Why Rocket Lab Is So Important To The Future Space Industry
Rocket Lab is a company working on much more than just rockets. The goal is to become a vertically integrated business, meaning they control a majority of the various sectors and demands within the industry. In other words, they help build the spacecraft, place it in orbit, control it in space, and so on.
Over the past couple of years, they have been building up toward this goal and making very impressive progress. Not to mention, right now they are testing Electron partial reusability, launching more frequently than ever, have access to two launch complexes, and are continuing to work on Neutron. All of which has happened in a relatively short period of time.
With record breaking future predictions surrounding demand for launch services and satellites, if Rocket Lab keeps up this pace, it could play an invaluable role in the coming years. Different company acquisitions including SolAero tech, ASI, and Planetary Systems Corp, are becoming a bigger part of what Rocket Lab has to offer. Here I will go more in-depth into Rocket Lab’s current plan, its importance within the industry, what to expect in the coming years, and more.
New Hardware
Just yesterday Rocket Lab tweeted saying, “Meet our latest tech: the Frontier-X radio and 12Nms reaction wheel for constellations. These new components add to our line of satellite essentials, from solar power to mission software, sep systems, star trackers, radios, and reaction wheels.” This new hardware is designed to expand the reach of small satellites beyond low Earth orbit (LEO) to cislunar and deep space destinations as well as provide an affordable alternative for mission payload downlink at LEO.
The Frontier-X radio has completed qualification and is slated to fly on NASA’s Escape and Plasma Acceleration and Dynamics Explorers (ESCAPADE) mission to Mars, for which Rocket Lab is developing and building two spacecraft. A great example of different hardware and components being built that facilitate unique missions for the company.
You also have Rocket Lab’s 12Nms reaction wheel. This component is designed for long-life and reliability, is ideal for attitude control of spacecraft with masses as high as 600-650 kg and lifetimes as long as 12 years. With its low mass, power, and volume, the 12Nms reaction wheel caters to high mission assurance civil or national security missions as well as high volume constellation missions. The 12Nms wheel comes in a radiation hardened variant for longer life and a LEO variant for shorter lifetime missions. The 12Nms wheel is currently planned for flight with an undisclosed large mega constellation customer.
This adds to Rocket Lab’s offerings for the growing market. In total, there are six main sectors that create the package that the company offers. This includes satellite design and manufacture, satellite components, Flight software and testing, Launch sites and ground testing, Launch services, and on-orbit operations.
In terms of launch, while a few other companies launch more frequently with larger rockets, when it comes to the small lift launch area Rocket Lab is ahead by far. Not to mention only a couple weeks ago they successfully launched their 33rd Electron rocket and first mission from Virginia. The “Virginia is for Launch Lovers” mission lifted off at 18:00 EST on January 24th from Rocket Lab Launch Complex 2 (LC-2) at Virginia Space’s Mid-Atlantic Regional Spaceport within NASA’s Wallops Flight Facility. The mission deployed three satellites to a 550km orbit for leading radio frequency geospatial analytics provider HawkEye 360. Rocket Lab has now successfully deployed a total of 155 satellites to orbit from the Company’s three launch pads across the U.S. and New Zealand.
The successful launch from LC-2 marks the beginning of a new era of responsive launch capability for small satellites from U.S. soil. Built with support from Virginia Space, the Commonwealth of Virginia and NASA Wallops Flight Facility, Rocket Lab Launch Complex 2 is designed to serve the responsive space needs of commercial, civil, defense, and national security customers, supporting up to 12 missions per year. Combined with Rocket Lab’s private Launch Complex 1 site in New Zealand, the Company’s launch sites can support more than 130 launch opportunities every year, delivering flexibility and rapid launch capability for customers. An important factor that will help facilitate the amount of growth and expected demand in the near future.
Acquisitions
Now that we know more about Rocket Lab’s new hardware and its recent launch developments, we can take a closer look at the multiple acquisitions playing such an important role. As of right now there are four main companies that Rocket Lab acquired within the last 3 years. The first and one of the most significant was Sinclair Interplanetary. Rocket Lab announced the execution of the agreement to acquire Sinclair Interplanetary on March 16, 2020 pending customary closing conditions and satisfying The Investment Canada Act review process. Terms of the approved deal were not disclosed.
The acquisition strengthened the satellite division of Rocket Lab, which produces the Photon spacecraft line. Sinclair Interplanetary products have now become key features of Rocket Lab’s Photon satellite platforms designed for low Earth orbit, lunar, and interplanetary small satellite missions. Rocket Lab has also dedicated resources to grow Sinclair’s already strong merchant spacecraft components business. The acquisition enabled Sinclair Interplanetary to tap into Rocket Lab’s resources, scale, manufacturing capability, and innovative technologies to make world-leading satellite hardware accessible to more customers.
Next in October 2021, Rocket LAb announced it had completed the acquisition of Advanced Solutions, Inc. (ASI), a Colorado-based aerospace engineering firm delivering mission proven space software, mission simulation and test systems, and Guidance, Navigation, and Control (GNC) solutions, for $40 million plus the potential for an additional $5.5 million performance earnout based on CY 2021 results. At the time of this acquisition, ASI’s team of almost 60 people continued to be led by prior management in Colorado. This has enabled Rocket Lab to grow its presence within the nation’s second-largest aerospace economy and home to cutting-edge space programs, military commands and renowned research laboratories and universities. Similar to Sinclair, the ASI team has continued to serve its existing customer base, while leveraging the ability to scale by tapping into Rocket Lab’s resources, team, and technology.
Only months later in December of that same year, Rocket Lab closed the previously-announced transaction to acquire Planetary Systems Corporation (PSC), a Maryland-based spacecraft separation systems company, for $42 million in cash and 1,720,841 shares of the Company’s common stock, plus the potential for an additional 956,023 shares of common stock for a performance earnout based on PSC’s CY 2022 and 2023 financial results. Rocket Lab announced the execution of the agreement to acquire PSC on 15 November, 2021 pending certain closing conditions.
PSC’s hardware is considered to be flight-proven, cost-effective, and lightweight, helping streamline the process of attaching satellites to rockets and releasing them in space while ensuring they’re protected during the journey to orbit. PSC’s products to date have a 100% mission success heritage across more than 100 missions launched with American launch providers including Rocket Lab, SpaceX, United Launch Alliance, Northrop Grumman, and more; NASA Space Shuttle and International Space Station missions; and international launch vehicles operated by Arianespace, the Indian Space Research Organisation (ISRO), the Japan Aerospace Exploration Agency (JAXA), and others.
Finally, less than one year ago in early January 2022, they acquired SolAero Holdings, Inc. (SolAero), a supplier of space solar power products and precision aerospace structures for the global aerospace market, for $80 million in cash. The acquisition aligned with Rocket Lab’s growth strategy of vertical integration to deliver a comprehensive space solution that spans spacecraft manufacture, satellite subsystems, flight software, ground operations, and launch. As one of only two companies producing high-efficiency, space-grade solar cells in the United States, SolAero’s space solar cells are among the highest performing in the world and support civil space exploration, science, defense and intelligence, and commercial markets. In combining with Rocket Lab, SolAero will tap into the Company’s resources and manufacturing capability to boost high-volume production, making high-performing space power technologies available at scale.
When the news came out, SolAero President and CEO, Brad Clevenger said, “We are very excited to join the outstanding team at Rocket Lab and contribute to their track record of innovation and on-orbit success. We look forward to becoming an integral part of Rocket Lab’s Space Systems business while continuing to offer all of our customers premier capability and value.”
Conclusion
Rocket Lab has been a very exciting company to watch over the last couple of years. Right now they are continuing to grow and innovate at an impressive pace. Soon we will begin watching Neutron tests as more hardware finishes development. We will have to wait and see how it progresses and the impact it has on the space industry.