In a significant step towards strengthening Europe’s sovereign space and defense capabilities, Rheinmetall AG and ICEYE, the global leader in Synthetic Aperture Radar (SAR) satellite technology, have announced plans to establish a joint venture for satellite manufacturing. A memorandum of understanding (MoU) formalizing this collaboration was signed on May 8, 2025.
The new entity, Rheinmetall ICEYE Space Solutions, will be majority-owned by Rheinmetall, holding 60% of the shares, with ICEYE retaining the remaining 40%. The formation of the joint venture is subject to the completion of definitive agreements and necessary regulatory approvals.
As part of Rheinmetall’s broader Space Cluster initiative in Germany, the venture will focus initially on the production of SAR satellites, with plans to expand into other space technologies. Satellite manufacturing is expected to commence in the second quarter of 2026, with facilities located at Rheinmetall’s Neuss site, among others.
“With the establishment of the new joint venture, we are making further inroads into the space domain,” stated Armin Papperger, CEO of Rheinmetall AG. “We are not only addressing the growing demand for space-based reconnaissance capabilities among global armed forces but also contributing to Germany’s standing as a leading technology hub. Our highly skilled teams in Neuss are being offered exciting new opportunities for the future. We are thrilled to deepen our collaboration with our trusted partner, ICEYE.”
Rafal Modrzewski, CEO and Co-founder of ICEYE, emphasized the strategic importance of the initiative: “ICEYE aims to be the primary provider of critical infrastructure for intelligence, surveillance, and reconnaissance (ISR) for allied nations. Establishing a joint venture with Rheinmetall strengthens our commitment to developing space-based technologies that secure sovereign defense capabilities for Europe.”
Context and Strategic Importance
The joint venture reflects a broader trend of growing investment in resilient, sovereign satellite infrastructure amidst increasing global security concerns. SAR satellites are a critical asset in modern defense and security operations. Unlike traditional optical satellites, SAR satellites can produce high-resolution images regardless of weather conditions or time of day—enabling reliable surveillance, reconnaissance, target acquisition, and battlefield situational awareness.
Rheinmetall and ICEYE have steadily strengthened their partnership over the past year. In June 2024, Rheinmetall announced its entry into the world’s largest SAR satellite constellation. By September 2024, Rheinmetall had secured exclusive rights to market ICEYE’s SAR technology to military and government customers in Germany and Hungary.
A key milestone was achieved in November 2024 when Rheinmetall, backed by the German government, brokered a contract to provide Ukraine with advanced SAR imaging satellite capabilities, expanding on ICEYE’s support during the ongoing conflict.
Looking Ahead
The creation of Rheinmetall ICEYE Space Solutions marks a strategic move not just for the companies involved, but for Europe’s broader ambitions to maintain technological independence and strengthen defense resilience. As the global space economy grows increasingly competitive and contested, initiatives like this underscore the critical role of public-private partnerships in securing the next generation of intelligence and surveillance infrastructure.
Discussion about this post