Rocket Lab Corporation announced that its Canadian subsidiary has been awarded $999,951 CAD in research and development funding from the Canadian Space Agency (CSA). The grant is part of the CSA’s Space Technology Development Program, which allocated $14.2 million CAD to 18 companies to accelerate Canadian space‑technology innovation.
The funding will support the design, build, and qualification of a new medium‑class reaction wheel with a 25 N·s angular‑momentum capacity, targeting satellites that weigh between 500 kg and 1,000 kg. Development and qualification will take place at Rocket Lab’s Toronto facility, a key hub for the company’s satellite‑hardware ecosystem. The new wheel will allow Rocket Lab to serve a broader range of satellite sizes, complementing the reaction wheels already flown on more than 300 spacecraft of all sizes.
Strategically, the grant expands Rocket Lab’s product portfolio into the medium‑class satellite market, strengthens its Canadian supply chain, and positions the company to capture a growing demand for attitude‑control systems. The investment aligns with Rocket Lab’s broader strategy of moving beyond small‑satellite launches to offer a full suite of space‑systems, including satellite platforms and components. By developing a flight‑proven component in Canada, Rocket Lab also reinforces its role in the Canadian space‑technology ecosystem and leverages the country’s growing talent pool.
Financially, Rocket Lab’s recent quarterly results show strong revenue growth—$155 million in Q3 2025, up 48% YoY—yet the company continues to post net losses as it invests heavily in new products and launch vehicles. The CSA grant provides a non‑recourse source of capital that can accelerate the time‑to‑market for the reaction wheel, potentially generating future revenue streams without diluting equity or increasing debt. The grant also signals government confidence in Rocket Lab’s technology, which can support future funding or partnership opportunities.
Management emphasized the significance of the award, with President Brad Clevenger stating, “The space industry is rapidly evolving and so is the demand for reliable, flight‑proven components for satellites of all sizes. We’re proud to support the CSA’s initiative by delivering a Canadian‑designed, Canadian‑built, cost‑effective reaction wheel that builds on more than 20 years of flight heritage.” The announcement was well‑received by investors, with Rocket Lab’s stock rising modestly in the days following the news, reflecting confidence in the company’s expanded product line and Canadian operations.
In summary, the CSA grant not only provides immediate R&D funding but also strengthens Rocket Lab’s competitive position in the medium‑class satellite market, enhances its Canadian supply chain, and supports the company’s long‑term strategy of offering end‑to‑end space solutions. The investment is expected to accelerate the development of a new reaction wheel that could open additional revenue opportunities and reinforce Rocket Lab’s reputation as a reliable supplier of satellite components.
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