Rheinmetall and ICEYE form satellite production joint venture

Rheinmetall and ICEYE, a manufacturer of Synthetic Aperture Radar (SAR) satellites, will establish a joint venture for satellite production. The companies signed a memorandum of understanding on May 8, 2025.

The new company, named Rheinmetall ICEYE Space Solutions, will be majority-owned by Rheinmetall (60 percent), with ICEYE holding 40 percent of the shares. The agreement is subject to final contracts and official approvals.

Rheinmetall ICEYE Space Solutions will be part of a new Rheinmetall Space Cluster in Germany. The joint venture will manufacture satellites, starting with Synthetic Aperture Radar (SAR) satellites and later expanding to other space-based technologies. Production is planned to begin in the second quarter of 2026 at the Rheinmetall Neuss site.

Armin Papperger, CEO of Rheinmetall AG, stated that the joint venture is a move into the space domain, responding to increased demand for space-based reconnaissance capabilities from military and security forces. He also noted the venture’s contribution to Germany’s technological capabilities and the creation of new opportunities at the Neuss site.

Rafal Modrzewski, CEO and Co-founder of ICEYE, said that ICEYE aims to be a key provider of intelligence, surveillance, and reconnaissance (ISR) infrastructure for allied nations. He added that the joint venture strengthens the focus on developing space-based technology for defense markets and securing European sovereign defense capabilities.

To meet this ambition, ICEYE is planning to launch 20 satellites into orbit in both 2025 and 2026, on top of 48 already in orbit. It is now able to offer 25 cm resolution imagery. Rheinmetall and ICEYE working together will be able to increase production of critical reconnaissance satellites for the European market, furthering the blocs sovereign capabilities. 

Rheinmetall’s involvement with SAR satellite technology includes a previous announcement in June 2024 about its participation in a radar reconnaissance satellite fleet and a further intensified cooperation with ICEYE in September 2024. This earlier agreement granted Rheinmetall exclusive marketing rights for ICEYE’s SAR satellites to military and government users in Germany and Hungary. Rheinmetall has become a significant partner for Hungary, providing its Lynx armoured fighting vehicle family and a range of other capabilities. 

In November 2024, Rheinmetall and Ukraine, with German government support, contracted with ICEYE to provide Ukraine with SAR imaging satellite reconnaissance capabilities to address an urgent need during the ongoing conflict. This agreement built upon previous SAR data and support provided by ICEYE to Ukraine. That agreement includes dedicated satellite capacity and constellation access, which allows the capacity of the entire ICEYE satellite fleet to be utilised by Ukraine, and in turn builds on earlier cooperation between ICEYE and the Ukrainian government. 

Calibre comment

A collage of ICEYE SAR images from Ukraine’s military intelligence showing Russian targets. The top left image shows Russian ships in a port, the top right image is a battery of S-300 or S-400 air defence systems, the bottom left image a Russian train, and the bottom right image a collection of aircraft at an airfield. Credit: The Main Intelligence Directorate of the Ministry of Defense of Ukraine.

SAR satellites can create high-resolution images regardless of weather conditions or time of day. These detailed images allow for the identification of small objects on the Earth’s surface, which can be beneficial for military surveillance, target acquisition, reconnaissance, and positioning. This means that they can be used for all-weather targeting and planning, and Ukraine has relied on a satellite launched in 2021 with 1 metre imagery, which has exceeded its scheduled service life but is still providing imagery. Ukrainian media reporting March 2025 indicated that Ukraine has taken 5,200 images using ICEYE satellites, with 1,000 of them taken between February and March. The same outlet reported that more than 40% of the images are used for precision strikes. Ukraine has had two dedicated ICEYE satellites for most of the war, which has guaranteed access to ICEYE imagery on demand, it appears that this will be maintained under the new agreement with access to the wider constellation providing more regular revisit times and other areas. The satellites Ukraine has used to date allowed a revisit rate of 2.5 times per day. 

By Sam Cranny-Evans, published on 9th May, 2025.