Rheinmetall and Synthetic Aperture Radar (SAR) satellite manufacturer ICEYE intend to establish a joint venture for satellite production, with a memorandum of understanding to this effect being signed on 8 May 2025.
Rheinmetall will hold a 60 percent majority stake in the newly established joint venture, Rheinmetall ICEYE Space Solutions, while ICEYE will possess the remaining 40 percent. The establishment of this venture is contingent upon final agreements and necessary approvals.
As part of the Rheinmetall Space Cluster in Germany, Rheinmetall ICEYE Space Solutions is set to produce satellites, initially focusing on Synthetic Aperture Radar (SAR) satellites, followed by additional space solutions.
Production is planned to occur at the Neuss facility, among other locations, with operations expected to commence in the second quarter of 2026.
“With the establishment of the new joint venture, we are making further inroads into the space domain,” says 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.”
SAR satellites provide a significant advantage over traditional satellites by producing high-resolution images irrespective of weather conditions or the time of day. These images are exceptionally detailed, allowing for the identification of even the smallest objects on the Earth’s surface. This capability offers critical benefits for military operations, including surveillance, target acquisition, reconnaissance, and positioning on the battlefield.
In June 2024, Rheinmetall, a technology group based in Düsseldorf, announced its involvement in the largest fleet of radar reconnaissance satellites globally. By September 2024, Rheinmetall had strengthened its collaboration with ICEYE, securing exclusive rights to market SAR satellites to military and governmental clients in Germany and Hungary.
A significant milestone in this enhanced partnership was achieved in November 2024, when Rheinmetall and Ukraine, with the backing of the German government, signed a contract to address Ukraine’s pressing need for SAR imaging satellite reconnaissance capabilities. This agreement expands the SAR data and additional support that Ukraine had been receiving from ICEYE during the conflict.
Rafal Modrzewski, CEO and Co-founder of ICEYE stated: “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.”
