On May 8, ICEYE announced a major partnership with Rheinmetall, one of Germany’s leading defence contractors, to co-develop and manufacture synthetic aperture radar (SAR) satellites. The initiative underscores ICEYE’s growing presence in the global defence market and aligns with Europe’s wider efforts to strengthen sovereign space-based intelligence capabilities.
The agreement will see Rheinmetall take a 60% stake in a new joint venture with ICEYE, establishing a satellite production facility in Neuss, Germany. While financial terms remain confidential and the deal is subject to regulatory approval, the move represents a significant step in Rheinmetall’s strategic expansion into the space domain.
“With the establishment of this new joint venture, we are making further inroads into the space domain,” said Armin Papperger, CEO of Rheinmetall. “We are responding to the rising demand for space-based reconnaissance while contributing to Germany’s role as a centre of high technology.”
This partnership builds on a series of collaborations between ICEYE and Rheinmetall over the past year:
Production at the new facility is expected to begin by mid-2026, with ambitions to expand into broader space capabilities over time. Papperger noted during Rheinmetall’s earnings call that the venture could generate up to €1 billion in annual revenue in the long term.
“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 defence markets and securing sovereign defence capabilities for Europe,” said Rafal Modrzewski, CEO and Co-founder of ICEYE.
This agreement comes at a time of historic growth in defence spending. According to the Stockholm International Peace Research Institute (SIPRI), global military expenditure reached $2.7 trillion in 2024—up 9.4% year-over-year and the highest increase since the end of the Cold War. Germany’s military expenditure surged 28% to $88.5 billion, making it the largest defense spender in Western Europe for the first time in decades, behind only the United States, China and Russia.
Space has become a critical component of national security strategies across Europe. Walther Pelzer, Director General of the German Space Agency (DLR), recently underscored the importance of space investments in Germany’s broader €1 trillion infrastructure and security strategy over the next decade.
ICEYE – (Founded 2014) operates the world’s largest SAR satellite constellations. Providing government and commercial customers with 24-7 imaging regardless of weather or lighting conditions—a critical advantage for defence, disaster response, and sovereign monitoring.
We’re proud to support ICEYE as it accelerates its growth in the defence sector and expands the strategic value of commercial SAR technology in partnership with global leaders like Rheinmetall.
