WASHINGTON — A joint venture between Germany’s Rheinmetall and Finnish synthetic aperture radar satellite maker Iceye has secured its first major contract, agreeing to operate a space-based surveillance constellation for Germany’s armed forces under a deal worth more than $1.9 billion.
The venture, Rheinmetall Iceye Space Solutions, said Dec. 18 it will build and operate a synthetic aperture radar (SAR) satellite constellation to provide persistent surveillance and reconnaissance data for the German military, with a focus on NATO’s eastern flank.
The system will support Germany’s permanent brigade in Lithuania, Panzerbrigade 45, a force of about 5,000 troops stationed there to deter Russian aggression, strengthen NATO’s forward presence and help protect the Suwałki Corridor, a narrow land bridge linking Poland and the Baltic States.
Under the contract, which runs through 2030 with options to extend, the joint venture will own and operate the SAR constellation, supply imagery, manage ground infrastructure and provide analytical services. Satellite production is set to begin in the third quarter of 2026 at a new facility in Neuss, Germany.
SAR satellites are valued by militaries because they can detect troop movements, vehicles, infrastructure changes and logistics activity regardless of weather or lighting conditions. That capability is particularly relevant in the Baltic region, where frequent cloud cover limits the usefulness of optical imagery.
Germany’s modernization drive
German officials have increasingly emphasized the need for guaranteed access to space-based intelligence that Berlin can control, task at short notice and integrate directly into national command and control systems. The new constellation is intended to provide what the companies described as persistent, sovereign intelligence support for the Lithuania-based brigade.
The deal comes as Germany accelerates investment in military space capabilities as part of a broader defense modernization drive triggered by Russia’s invasion of Ukraine in 2022. Since then, European governments have sharply increased defense spending and reassessed their dependence on external providers for critical intelligence and surveillance services.
Germany has emerged as a leading proponent of sovereign military space infrastructure in Europe. The government has recently approved more than $40 billion in funding through 2030 for national space-based defense capabilities, according to industry and government statements.
The Rheinmetall-Iceye contract is notable not only for its size, but also for what it signals about shifting procurement priorities. By placing ownership of both satellites and the data chain with a European-controlled entity, the program reduces reliance on U.S. intelligence assets.
