ICEYE, Rheinmetall Win €1.7 Billion German Defense Deal
The joint venture established by Finnish earth observation firm ICEYE and German defense manufacturer Rheinmetall has achieved a significant milestone. Officially formed in November following its announcement earlier this year, the joint venture recently secured a five-year contract valued at €1.7 billion with the German Bundeswehr. Under this agreement, the joint entity, designated as Rheinmetall ICEYE Space Solutions, will deliver synthetic aperture radar (SAR) data to the German military from a newly developed, domestically produced satellite constellation.
In accordance with the contract, the satellites will be manufactured at the joint venture’s facility in Neuss, Germany, beginning in the third quarter of 2026. Through the end of 2030, the Bundeswehr will receive a substantial volume of daily SAR imagery, with provisions for potential extension into the next decade. The constellation will remain under the ownership of Rheinmetall ICEYE Space Solutions, which will oversee ground station operations and AI-powered image analysis services while granting exclusive access to the German government.
Distinct from traditional optical earth observation satellites, ICEYE’s SAR technology employs radar imaging, which enables constant, all-weather, day-and-night surveillance capabilities unaffected by cloud cover, smoke, dust, or fog. This key feature will allow German defense forces to maintain continuous situational awareness.
ICEYE’s satellites are capable of capturing radar images at resolutions as fine as 16 centimeters, and Rheinmetall’s established digital infrastructure, trusted by the Bundeswehr, will facilitate prompt dissemination of these images to operators. The advanced system will also bolster security measures for Germany’s “Lithuania Brigade,” currently stationed on NATO’s eastern flank.
Looking ahead, Germany remains the largest defense spender in Europe and has committed €35 billion towards space-related defense initiatives over the next five years. Interest in sovereign SAR capabilities continues to grow among other European nations. ICEYE has received considerable attention from various European defense ministries, resulting in agreements with the Finnish Defense Forces, Portuguese Air Force, and Polish Armed Forces.