Bundeswehr Nears €3 Billion Order for 40 SAR Satellites from Rheinmetall-ICEYE Joint Venture

Germany to Bolster Space Reconnaissance with New SAR Satellite Constellation

Germany's Bundeswehr is reportedly on the verge of placing a significant order for 40 Synthetic Aperture Radar (SAR) satellites, a move set to substantially enhance the nation's defense reconnaissance capabilities. The potential contract, valued at nearly 3 billion euros, is expected to be awarded to a newly established joint venture between German defense hardware provider Rheinmetall AG and Finnish radar satellite specialist ICEYE Oy. Deliveries for the new constellation are anticipated within the next two years, with industrial production slated to begin in Neuss, Germany, by 2026.

Key Players and Procurement Details

The joint venture, known as Rheinmetall ICEYE Space Solutions, sees Rheinmetall holding a 60% stake and ICEYE Oy the remaining 40%. According to reports, Rheinmetall CEO Armin Papperger was quoted by the German newspaper Handelsblatt on October 24th, confirming the contract's scope. The finalization of this substantial order is contingent upon approval from the Bundeswehr's procurement office and the German parliament's budget committee.

Strategic Importance of SAR Technology

Synthetic Aperture Radar (SAR) technology is crucial for modern military intelligence as it allows for the creation of highly detailed two-dimensional images or three-dimensional reconstructions of objects, regardless of weather conditions or time of day. This capability is vital for:

• Surveillance of troop movements
• Monitoring critical infrastructure
• Tracking maritime activities

The acquisition of this national constellation marks a significant shift for the Bundeswehr, aiming for higher revisit rates, increased tactical reactivity, and enhanced resilience against potential disruptions. Currently, Germany relies on a limited number of sovereign satellites and supplements its data needs by purchasing from private providers.

Context within Germany's Broader Space Defense Strategy

This procurement aligns with Germany's broader strategic investment in space security. In September 2025, German Defense Minister Boris Pistorius announced a commitment of €35 billion ($41 billion) over the next five years to bolster the country's space defense architecture. This includes plans to acquire new satellite constellations for early warning, reconnaissance, and communications, as well as improving situational awareness through radars and telescopes. The Bundeswehr has been steadily developing its space capabilities, with the SAR-Lupe system, comprising five satellites, operational since 2007/2008. Its successor, the SARah system, consisting of three satellites, saw its first launch in June 2022 and the remaining two in December 2023, with full operational use planned for September 2024. The new 40-satellite order is expected to be a key component of an ambitious plan to establish a national satellite constellation of several hundred satellites by 2029, a project estimated to cost up to ten billion euros.