Rheinmetall Boosts Satellite Business Amid Ukraine Support Deal

THE HAGUE, Netherlands - On Thursday, Rheinmetall and Finnish company ICEYE, known for their satellite technology, entered into an agreement to form a new joint venture aimed at producing satellites.

The newly formed entity called "Rheinmetall ICEYE Space Solutions" marks a considerable advancement in the expansion plans of the major German defense firm into the realm of space technology. This also aligns with the ongoing armament initiatives being pursued by both Germany and Europe as a whole.

According to the agreement, Rheinmetall will have a controlling interest of 60% in the new company, while ICEYE will retain a minority shareholding at 40%. This partnership plans to start by concentrating on producing Synthetic Aperture Radar (SAR) satellites, then broaden its scope to encompass additional aerospace technologies.

Defense firms boost Germany's automotive sector to rapidly produce armaments.

SAR technology enables surveillance satellites to penetrate cloud cover and enhances the clarity of the resulting images. This has been ICEYE’s focus, with Rheinmetall referring to their collaborator as a “world-leading SAR satellite producer” in official statements.

The production is set to start during the second quarter of 2026, with Rheinmetall’s plant located in Neuss, Western Germany, playing a key role as one of the main production facilities. This site formerly concentrated on automobile manufacturing.

This satellite development program is a component of the larger "Rheinmetall Space Cluster" that the German defense firm is establishing.

"The creation of this new joint venture allows us to make significant strides in the aerospace sector,” stated Armin Papperger, CEO of Rheinmetall AG. “This move addresses the growing requirement for satellite surveillance systems within global military and security organizations while also reinforcing Germany’s position as a hub for technological innovation.”

This partnership expands upon a previous collaboration that achieved a notable benchmark in November 2024. At that time, Rheinmetall and Ukraine entered into an agreement—supported by the German government—to supply essential Synthetic Aperture Radar (SAR) satellite information to Ukraine’s Defense Ministry. This setup prolongs the satellite surveillance abilities that ICEYE has offered Ukraine since 2022, aiding strategic planning for Ukrainian forces combating ongoing attacks from Russian soldiers during the conflict’s third consecutive year following Russia's all-out invasion.

In addition, in 2024, Rheinmetall obtained the sole authorization to promote SAR satellites for governmental and military customers in both Germany and Hungary.

Thursday's move aligns with Rheinmetall's ambitions of grabbing market share amid skyrocketing demand for military hardware in Europe, with an aggressive Russia to the east and an increasingly unpredictable United States to the west.

In this initiative, Rheinmetall has begun converting portions of its automotive production capabilities. The company’s CEO stated regarding this shift, “Our exceptionally skilled team members at the Neuss location are now gaining an exciting new outlook for their futures.”