Rheinmetall and Finnish satellite manufacturer ICEYE signed a memorandum of understanding on Thursday to form a joint venture focused on satellite production, including continued support for Ukraine’s defense needs.

While the US remains a key intelligence provider to Kyiv, European officials view that support as increasingly unreliable. In March 2025, the Trump administration paused military aid and satellite data to Ukraine, reinforcing Europe’s push for independent space-based capabilities.

The new company, Rheinmetall ICEYE Space Solutions, marks a major expansion of Rheinmetall’s presence in the space sector and supports Germany’s and Europe’s broader defense modernization efforts, according to Defense News.

Building SAR satellites in Germany

Rheinmetall will hold a 60% stake in the venture, with ICEYE owning 40%. Initial efforts will focus on building Synthetic Aperture Radar (SAR) satellites, with potential to expand into other space technologies.

SAR technology, ICEYE’s core specialty, allows satellites to capture high-resolution images through cloud cover, day or night. Rheinmetall called ICEYE a “globally leading SAR satellite manufacturer” in its announcement.

Production is expected to begin in the second quarter of 2026 at Rheinmetall’s Neuss facility in western Germany, a former automotive plant. The project is part of the larger Rheinmetall Space Cluster, aimed at establishing the company as a leading player in space-based defense.

“With the establishment of the new joint venture, we are making further inroads into the space domain,” said Rheinmetall CEO Armin Papperger. “We are responding to growing global demand for space-based reconnaissance while reinforcing Germany’s role as a technology hub.”

Backing Ukraine, expanding access

The venture builds on an existing partnership that reached a key milestone in November 2024 with a German government-backed contract to provide SAR satellite data to Ukraine’s Ministry of Defence. ICEYE has supplied Ukraine with satellite imagery since 2022, supporting operational planning amid Russia’s ongoing invasion.

In 2024, Rheinmetall also secured exclusive rights to market SAR satellites to military and government clients in Germany and Hungary.

The initiative reflects Rheinmetall’s broader strategy to meet surging demand for advanced surveillance across Europe. With Russia growing more aggressive and US foreign policy less predictable, European governments are investing heavily in autonomous defense capabilities. As part of this shift, Rheinmetall is converting parts of its automotive operations for defense production.