Rheinmetall and ICEYE to Form Joint Venture for Satellite Production and Space Solutions

Rheinmetall and ICEYE to Form Joint Venture for Satellite Production and Space Solutions
by Robert Schreiber
Berlin, Germany (SPX) May 12, 2025

Rheinmetall and leading SAR satellite manufacturer ICEYE have announced plans to form a joint venture dedicated to satellite production and advanced space solutions. This partnership, formalized through a memorandum of understanding signed on May 8, 2025, marks a significant step forward in the companies' collaborative efforts to expand their presence in the global space market.

Under the agreement, the new entity, Rheinmetall ICEYE Space Solutions, will be 60 percent owned by Rheinmetall and 40 percent by ICEYE, pending final agreements and regulatory approvals. The joint venture will operate as part of the Rheinmetall Space Cluster in Germany, focusing initially on manufacturing Synthetic Aperture Radar (SAR) satellites, with plans to expand to other space technologies. Production is set to commence at the Neuss site in the second quarter of 2026.

"With the establishment of the new joint venture, we are making further inroads into the space domain," said Armin Papperger, CEO of Rheinmetall AG. "We are thus not only responding to the increased demand for space-based reconnaissance capabilities among armed and security forces worldwide, but also contributing to the preservation and expansion of Germany as a centre of technology. Our highly qualified colleagues at the Neuss site are being given a promising new perspective for the future. We are delighted to expand our cooperation with our proven partner ICEYE."

"ICEYE aims to be the primary provider of critical infrastructure for intelligence, surveillance, and reconnaissance (ISR) to allied nations. We are excited to deepen our strategic collaboration with Rheinmetall by establishing a joint venture. This joint venture further strengthens our focus on developing space-based technology for the needs of global defense markets and securing sovereign defense capabilities for Europe," said Rafal Modrzewski, CEO and Co-founder of ICEYE.

SAR satellites, known for their ability to capture high-resolution images regardless of weather conditions or time of day, provide critical advantages for military applications, including surveillance, target acquisition, and battlefield reconnaissance. These systems enable precise imaging even in challenging operational environments, offering significant strategic benefits to defense forces.

In recent years, Rheinmetall has been expanding its footprint in the satellite technology sector. In June 2024, the company announced its involvement in the world's largest fleet of radar reconnaissance satellites. This was followed by exclusive rights secured in September 2024 to market ICEYE's SAR satellites to military and government clients in Germany and Hungary. A major milestone came in November 2024, when Rheinmetall and ICEYE collaborated to supply Ukraine with SAR imaging capabilities, supported by the German government, to address urgent battlefield needs.