Lift-off: German arms giant Rheinmetall begins producing satellites

German arms giant Rheinmetall has begun producing satellites, the company said on Tuesday.

Around 50 satellites are to be produced annually at the firm's site in Neuss, in western Germany, with the first due to be launched into orbit aboard a SpaceX rocket in early 2027. Following preparatory work, including planning and set-up, the company said it had moved on to the industrial implementation phase. 

The facility is manufacturing SAR satellites in a joint venture with Finnish operator ICEYE. 

Synthetic Aperture Radar (SAR) technology delivers precise images of troop movements and enemy positions, even at night and in poor weather conditions. 

The images will be sold to the German military - the Bundeswehr - and other armed forces. Rheinmetall and ICEYE hold a multi-year contract with the Bundeswehr worth €1.7 billion ($1.9 billion). 

The German military has secured exclusive access to an undisclosed number of SAR satellites in order to receive imagery as quickly as possible.

The radar images are intended to help maintain an accurate operational picture, particularly on NATO's eastern flank and will also support the Bundeswehr brigade stationed in Lithuania.

Competitors in the satellite business include Airbus Defence and Space and Bremen-based firm OHB.

Rheinmetall has expanded massively since the Russian invasion of Ukraine, as the German government seeks to modernize the Bundeswehr in line with new NATO targets. 

Alongside its traditional business in artillery, tanks and ammunition, the arms manufacturer now also sells ships, aircraft components and drones.