Rheinmetall and OHB in Discussions for Starlink-Style Service for German Military
Rheinmetall, a prominent defense manufacturer, and satellite producer OHB are currently in talks to submit a joint proposal for developing a satellite internet service tailored to the requirements of the German armed forces, analogous to SpaceX’s Starlink. These preliminary negotiations may position both companies to access Berlin’s €35 billion budget dedicated to military space technology, according to individuals familiar with the matter. Following reports of these discussions, OHB experienced a 28% increase in share value on Monday, January 26th.
The proposed partnership is focused on securing a multibillion-euro contract to establish a secure, military-grade satellite communications network in low Earth orbit (LEO) for the Bundeswehr, Germany’s armed forces. Stakeholders have likened this initiative to establishing a “Starlink for the Bundeswehr.”
The discussions between Rheinmetall, based in Düsseldorf, and OHB, headquartered in Bremen, occur against the backdrop of intensifying competition among European defense and space enterprises following Berlin’s commitment last year to substantial investment in military space capabilities. As the largest economy within the European Union, Germany aims to advance its military assets and reduce reliance on the United States.
SpaceX’s Starlink stands as the leading provider of space-based broadband, deploying over 9,000 satellites to deliver connectivity from LEO - approximately 2,000 kilometers above Earth, to millions worldwide. Initially a commercial service, Starlink’s high-speed connection and portable terminals have become essential for Ukrainian defense operations since Russia’s invasion, offering resilient battlefield communications amid disrupted local networks. In response, SpaceX introduced ‘Starshield,’ an LEO satellite service specifically designed for defense and intelligence clients. Concerns regarding dependence on external providers such as Elon Musk or the US government have motivated several nations to pursue independent, secure satellite networks.
Germany is projected to be the world’s third-largest spender on space technology after the United States and China. Armin Fleischmann, a space coordinator within a division of the German military, stated that the Bundeswehr’s new network will predominantly utilize German companies in its development over the next few years. The immediate objective is to reinforce NATO’s eastern flank, particularly through Germany’s permanent brigade deployment in Lithuania, with further expansion planned thereafter. Relevant military authorities have finalized technical specifications and are preparing procurement tenders.
Historically, Rheinmetall’s expertise has centered on armored vehicles, artillery, and munitions; however, recent years have seen the company diversify rapidly in response to increased defense spending. At the end of last year, Rheinmetall secured its first space contract, valued at up to €2 billion, collaborating with Finnish company Iceye to build satellites at a repurposed automotive facility in Germany. This project will support a radar reconnaissance satellite constellation optimized for surveillance during adverse weather and nighttime conditions.
OHB, a supplier of satellites for the EU’s Galileo navigation system, is experiencing amplified competitive pressures due to a potential merger among the space divisions of Airbus, Thales, and Leonardo - a move which OHB CEO Marco Fuchs has criticized as potentially anti-competitive. As Europe’s third-largest satellite manufacturer, OHB faces challenges in competing independently, but the Bundeswehr project offers an opportunity to enhance its portfolio of small- and medium-sized satellites. Already providing radar reconnaissance satellites to the German military, OHB is pursuing greater involvement in the defense sector and recently raised its earnings and turnover forecasts, anticipating significant growth in military space expenditure.