An Iceye satellite in orbit. Photo: Iceye

The German Armed Forces has awarded a new joint venture between Rheinmetall and Iceye a contract to deliver an exclusive constellation, valued at approximately 1.7 billion euro ($2 billion). 

Data from the synthetic aperture radar (SAR) constellation will primarily be used to protect the German Armed Forces’ Lithuania Brigade and secure NATO’s eastern flank, the companies said Thursday. The contract, referred to as SPOCK 1, runs from the end of 2025 to the end of 2030 and comes with options to extend. 

The new joint venture between the German defense and technology firm and Iceye is called Rheinmetall Iceye Space Solutions and is based in Neuss, near Düsseldorf. Production of the first joint venture SAR satellites is scheduled to begin in the third quarter of 2026. 

Iceye noted the venture will provide SAR images and a full service that includes that operations, ground station management, and AI-driven image evaluation. However, the satellite constellation will remain the property of Rheinmetall Iceye Space Solutions.

This award comes after Germany pledged to invest 35 billion euro in space defense capabilities by 2030, with plans to acquire satellite constellations for early warning, reconnaissance, and communications.

Iceye CEO and co-founder Rafal Modrzewski called the agreement a mark of Iceye’s “evolution from a New Space pioneer to a premier provider of mission-critical capabilities.” 

“Space-based intelligence is the foundational layer of modern defense, but it is no longer just a strategic backdrop – it is a tactical instrument. We are driving a necessary evolution where single, vulnerable systems are replaced by resilient constellations that deliver timely, actionable insights directly to decision-makers when they’re needed most,” Modrewski said. “By uniting rapid satellite production with advanced analytics, we are creating a new model for how nations secure strategic and tactical advantage from space.”