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Rocket Lab Wins $397 Million Space Force Contract to Deploy Flatellites for Airborne Target Tracking
Rocket Lab Corp. (NASDAQ: RKLB) announced on Tuesday that it has secured a $397 million contract from the U.S. Space Force to develop, launch, and operate a fleet of Flatellites as part of the Space‑Based Airborne Moving Target Indicator (SB‑AMTI) program. The award, made through a competitive Other Transaction Authority, will see the satellites carried on Rocket Lab’s upcoming Neutron medium‑lift rocket.
Flatellites are a new class of small, flat satellites that Rocket Lab introduced in February. Their streamlined, low‑profile design lets the company cram more units into a single payload, boosting launch density and cutting the cost per satellite. The satellites are engineered to fit snugly into the Neutron’s payload bay, which is expected to lift up to 13,000 kg to low‑Earth orbit by the end of 2026. The Space Force’s SB‑AMTI initiative aims to deliver persistent, radar‑like surveillance from orbit, enabling real‑time tracking of airborne targets.
The company has not yet built a Flatellite, but it has been acquiring smaller firms and developing in‑house components such as star trackers, reaction wheels, and electric propulsion systems. Rocket Lab says this new manufacturing approach will allow high‑volume production without compromising reliability. Analysts note that the LEO satellite market is projected to grow at a 14 % compound annual growth rate from 2025 to 2033, according to Grand View Research. A larger fleet of Flatellites could position Rocket Lab to serve both commercial constellations and defense customers.
This contract expands Rocket Lab’s growing portfolio of U.S. government and defense programs. In addition to the Space Force, the company already supplies satellites to NASA, DARPA, and the National Reconnaissance Office. The Flatellite program is part of a broader strategy to become an end‑to‑end space company that designs, builds, and operates spacecraft and subsystems. The Neutron rocket, which has faced delays—including a stage‑1 tank rupture during a January 2026 pressure test—remains on schedule for a maiden flight in the fourth quarter of 2026.
The SB‑AMTI program also awarded a $4.16 billion contract to SpaceX for a similar mission, underscoring the importance of space‑based surveillance to the U.S. military. Rocket Lab’s Flatellites will provide a complementary capability, with a smaller footprint and potentially lower cost per unit. The Space Force’s acquisition strategy emphasizes rapid fielding of innovative solutions, and the Flatellite contract is one of several task orders under the program.
At present, Rocket Lab’s revenue is dominated by its Electron launch vehicle, which has completed 92 missions and deployed more than 263 satellites. The company’s shift toward the Neutron and Flatellite programs signals a move toward larger payloads and higher‑volume satellite manufacturing. The next steps for Rocket Lab include finalizing Flatellite designs, integrating them with the Neutron launch system, and preparing for the first operational flight in late 2026. Investors and defense analysts will be watching closely as the U.S. space‑based surveillance landscape evolves.
Flatellites are a new class of small, flat satellites that Rocket Lab introduced in February. Their streamlined, low‑profile design lets the company cram more units into a single payload, boosting launch density and cutting the cost per satellite. The satellites are engineered to fit snugly into the Neutron’s payload bay, which is expected to lift up to 13,000 kg to low‑Earth orbit by the end of 2026. The Space Force’s SB‑AMTI initiative aims to deliver persistent, radar‑like surveillance from orbit, enabling real‑time tracking of airborne targets.
The company has not yet built a Flatellite, but it has been acquiring smaller firms and developing in‑house components such as star trackers, reaction wheels, and electric propulsion systems. Rocket Lab says this new manufacturing approach will allow high‑volume production without compromising reliability. Analysts note that the LEO satellite market is projected to grow at a 14 % compound annual growth rate from 2025 to 2033, according to Grand View Research. A larger fleet of Flatellites could position Rocket Lab to serve both commercial constellations and defense customers.
This contract expands Rocket Lab’s growing portfolio of U.S. government and defense programs. In addition to the Space Force, the company already supplies satellites to NASA, DARPA, and the National Reconnaissance Office. The Flatellite program is part of a broader strategy to become an end‑to‑end space company that designs, builds, and operates spacecraft and subsystems. The Neutron rocket, which has faced delays—including a stage‑1 tank rupture during a January 2026 pressure test—remains on schedule for a maiden flight in the fourth quarter of 2026.
The SB‑AMTI program also awarded a $4.16 billion contract to SpaceX for a similar mission, underscoring the importance of space‑based surveillance to the U.S. military. Rocket Lab’s Flatellites will provide a complementary capability, with a smaller footprint and potentially lower cost per unit. The Space Force’s acquisition strategy emphasizes rapid fielding of innovative solutions, and the Flatellite contract is one of several task orders under the program.
At present, Rocket Lab’s revenue is dominated by its Electron launch vehicle, which has completed 92 missions and deployed more than 263 satellites. The company’s shift toward the Neutron and Flatellite programs signals a move toward larger payloads and higher‑volume satellite manufacturing. The next steps for Rocket Lab include finalizing Flatellite designs, integrating them with the Neutron launch system, and preparing for the first operational flight in late 2026. Investors and defense analysts will be watching closely as the U.S. space‑based surveillance landscape evolves.
