German defence company Rheinmetall and Finnish microsatellite manufacturer ICEYE have signed a memorandum of understanding to form a joint venture (JV) to build satellites and space solutions.
The agreement marks a significant step in expanding their existing collaboration.
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The new JV, Rheinmetall ICEYE Space Solutions, will be part of the Rheinmetall Space Cluster based in Germany.
Rheinmetall CEO Armin Papperger said:“With the establishment of the new joint venture, we are making further inroads into the space domain.
“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.”
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By GlobalDataRheinmetall will hold a 60% stake in the joint venture, making it the majority shareholder, while ICEYE will retain 40%.
Production activities will initially focus on Synthetic Aperture Radar (SAR) satellites before taking up other space solutions.
Manufacturing is set to commence in the second quarter of 2026, with one of the key production locations being Rheinmetall’s facility located in Neuss, western Germany.
SAR technology allows satellites to capture high-resolution images under any weather conditions and during both day and night.
This capability enhances operational advantages for armed forces in surveillance, target acquisition, reconnaissance, and battlefield positioning.
ICEYE CEO and co-founder Rafal Modrzewski said: “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.”
In June 2024, Rheinmetall disclosed its involvement in the creation of the largest constellation of radar reconnaissance satellites globally. By September, Rheinmetall had deepened its partnership with ICEYE.
As a result of this enhanced collaboration, Rheinmetall obtained exclusive distribution rights for SAR satellites to military and governmental customers within Germany and Hungary.
A significant development in the partnership between Rheinmetall and ICEYE occurred in November 2024 when an agreement was reached to fulfil Ukraine’s immediate requirements for SAR satellite reconnaissance capabilities.
With the backing of the German government, Rheinmetall and Ukraine entered a contract that expanded upon the SAR data assistance previously provided to Ukraine by ICEYE during the conflict.
