Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
A top provider of commercial satellite imagery that was blocked by the US from providing some data services to Ukraine is set to bid with Rheinmetall for contracts to build Germany’s intelligence capabilities.
Vantor and Rheinmetall have signed a memorandum of understanding for a joint venture, according to a spokesperson for Vantor.
US-based Vantor and Rheinmetall would also seek to bid for other European deals, said a person familiar with the partnership.
Vantor, then known as Maxar Technologies, sparked controversy last year when its service was briefly blocked in Ukraine after the Trump administration cut off access to data collected by the US and shared with allies.
The incident temporarily left Ukraine without satellite imagery and at a battlefield disadvantage against Russia. It also fuelled speculation that the US had a “kill switch” on defence technology sent abroad, which could put clients at risk of losing access to weapons and data in the middle of fighting.
Vantor has since sought to recast itself as a provider of “sovereign” satellite intelligence and imagery, which includes map-matching “Raptor” software used in navigation and directing drones in areas without GPS navigation.
The company, based in Colorado, said its partnership with Rheinmetall “will give Germany’s armed forces sovereign control” of the data and enable European customers to directly control Vantor’s satellite constellation.
Rheinmetall chief executive Armin Papperger said the partnership with Vantor was “laying the groundwork for a sovereign European capability in the field of geospatial intelligence”.
Rheinmetall had sought assurances ahead of the deal that intellectual property would be held in Europe, said one person familiar with the discussions.
The tie-up comes as the German tankmaker pushes into the space market at a time when European governments are seeking to end their dependence on the US by building satellite constellations for reconnaissance, intelligence and communications.
Berlin has pledged to spend €35bn on military space technology by 2030.
Last year, Rheinmetall was awarded its first contract for satellite reconnaissance after forming a joint venture with the Finnish space technology company Iceye.
It wants to build on that German deal — for a satellite-based reconnaissance programme known as Spock 1 worth up to €2.7bn — by bidding for a successor contract called Spock 2. Rheinmetall could partner with both Vantor and Iceye in the bid, said the person familiar with the discussions.
Rheinmetall also recently formed a joint venture with the Bremen-based satellite maker OHB to bid for the contract to build an equivalent to Elon Musk’s Starlink internet service for the German armed forces.
Agreements with non-German partners in recent months have included a deal with Dutch start-up Destinus to produce long-range missiles as well as a deal with South Korea’s LIG Defense&Aerospace to offer medium- and long-range air defence systems. It is also bidding with Boeing Australia to supply unmanned aircraft to Germany’s air force.
A person close to Vantor said last year’s halt of intelligence to Ukraine had been a “wake-up call” but insisted the company was not at fault as the US had a right to control access to the platform, known as GEGD.
But Vantor said the cut-off had also been good for business as several foreign customers had since paid directly for its services, rather than rely on technology controlled by Washington.
“That moment reinforced the importance of sovereign intelligence access and control, said a Vantor representative.
