Major contract worth billions for space reconnaissance: Rheinmetall and ICEYE open up Dimension Space

Rheinmetall has received a major order from the German Armed Forces for the space sector. The Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) has commissioned Rheinmetall ICEYE Space Solutions to supply the German armed forces with space-based reconnaissance data via exclusive access to a synthetic aperture radar (SAR) satellite constellation.

To deliver this capability, Rheinmetall has partnered with ICEYE – the world's leading manufacturer and operator of synthetic aperture radar (SAR) satellites – to establish Rheinmetall ICEYE Space Solutions. Based in Neuss, the joint venture will provide a high volume of SAR images via its exclusive constellation, offering a comprehensive service solution that includes full operations, ground station management, and AI-driven image evaluation. The satellite constellation remains the property of Rheinmetall ICEYE Space Solutions.

The current contract is valued at approximately €1.7 billion gross. Furthermore, an extension option is part of the contract. The space-based reconnaissance data will be used, primarily, to protect the German Armed Forces' ‘Lithuania Brigade’ and secure NATO's eastern flank.

Armin Papperger, CEO of Rheinmetall AG, said: “We are grateful for the great trust that the Bundeswehr has placed in us in the field of space technology. Modern armed forces depend on access to and control of space-based reconnaissance, communications, and mission control. As a provider of digital systems, we are working with our European partners to achieve this.”

Rafal Modrzewski, CEO and co-founder of ICEYE: “ICEYE is proud to support Germany and, by extension, the security of Europe through this landmark program. Space-based intelligence is the foundational layer of modern defense, but it is no longer just a strategic backdrop – it is a tactical instrument. We are driving a necessary evolution where single, vulnerable systems are replaced by resilient constellations that deliver timely, actionable insights directly to decision-makers when they're needed most. This historic agreement demonstrates ICEYE’s evolution from a New Space pioneer to a premier provider of mission-critical capabilities. By uniting rapid satellite production with advanced analytics, we are creating a new model for how nations secure strategic and tactical advantage from space.”

The contract runs from the end of 2025 to the end of 2030 with options to extend. The scope of delivery includes a very high number of images per day, a service that will be provided by Rheinmetall ICEYE Space Solutions from its own sovereign constellation. Production of the first joint venture SAR satellites is scheduled to begin in the third quarter of 2026 at the company’s site in Neuss.

Within the Bundeswehr, the project is entitled ‘SAR Space System for Persistent Operational Tracking Stage 1’, (and referred to as ‘SPOCK 1’). SAR satellites project a powerful radar beam off the Earth’s surface from an orbit of 500 to 600 kilometers. The beam returns to the satellite in a series of pulses, which are processed to build a detailed picture of the ground below. Because SAR technology uses radar to illuminate the Earth instead of sunlight, it can see through clouds, smoke, ash, rain, and sandstorms to capture imagery day and night in any weather. This capability allows SAR satellites to collect images far more frequently than traditional optical systems, providing persistent coverage of fast-changing events. The technology also detects subtle changes invisible to the human eye, delivering up to 16 cm resolution.