Rocket Lab's Neutron Rocket Joins U.S. Space Force's $5.6b NSSL Program

Rocket Lab, a global leader in launch services and space systems, has been selected by the U.S. Space Force to compete for the Department of Defense’s highest-priority national security missions for its National Security Space Launch (NSSL) Phase 3 Lane 1 program. This selection marks a significant milestone for Rocket Lab, positioning it as a key player in the space launch industry. The firm-fixed price, indefinite delivery/indefinite-quantity (IDIQ) contract has a five-year ordering period running through June 2029, with a maximum value of $5.6 billion. This contract not only provides a substantial financial opportunity but also ensures a steady stream of high-priority national security missions for Rocket Lab.

The Neutron rocket, Rocket Lab's 13-ton reusable carbon composite medium-lift launch vehicle, is at the heart of this selection. Designed to deploy payloads up to 13,000 kg, Neutron is being developed at an unprecedented pace, leveraging Rocket Lab's industry leadership as one of the world’s most frequent and reliable launch providers. With 63 Electron launches to date and being one of only two U.S. launch providers to have launched multiple payloads to orbit so far in 2025, Rocket Lab is well-positioned to meet the demands of the NSSL program.



One of the key strategic advantages Rocket Lab gains from this selection is the opportunity to demonstrate the capabilities of its Neutron rocket. The Neutron rocket's first launch is scheduled for the second half of 2025, and upon a successful flight, Rocket Lab will be eligible to compete for individual task orders awarded within the NSSL program. This positions Rocket Lab as a leader in medium-lift launch capabilities, setting a new standard for performance, affordability, and reliability.

Additionally, Rocket Lab's selection for the NSSL program includes stringent requirements that aim to develop a diversified, competitive, and reliable domestic launch base. The program plans to award a minimum of 30 missions within its contracting period through to 2029, with the potential for an extension through to 2034. As part of the on-ramp to the NSSL program, Rocket Lab receives a $5 million task order to perform a capabilities assessment that demonstrates the Company’s tailored approach to mission assurance for launches awarded through the NSSL program. This assessment further validates Rocket Lab's expertise and commitment to high-assurance national security missions.

Rocket Lab Founder and CEO, Sir Peter Beck, emphasizes the strategic importance of this selection, stating, "Supporting assured access to space for the nation’s most important missions has always been the goal with our Neutron rocket, and we’re incredibly proud to be selected by the U.S. Space Force to demonstrate this commitment for the NSSL. Neutron is a powerful new launch option that will set a new standard for performance, affordability, and reliability in medium launch, and its selection to the program demonstrates a high degree of confidence by the Department of Defense in Neutron’s capabilities ahead of its first launch later this year." This confidence from the Department of Defense further solidifies Rocket Lab's competitive edge over other launch providers.

To ensure successful integration into the NSSL program, Rocket Lab must achieve several key technological and operational milestones with the Neutron rocket. These milestones are crucial for demonstrating the rocket's reliability, performance, and readiness for high-assurance national security missions. Here are the key milestones and their potential influence on investor confidence:

1. Successful First Launch: The first launch of Neutron, scheduled for the second half of 2025, is a critical milestone. A successful launch will validate the rocket's design, performance, and reliability, making Rocket Lab eligible to compete for individual task orders within the NSSL program.

2. Completion of Capabilities Assessment: Rocket Lab has received a $5 million task order to perform a capabilities assessment that demonstrates the Company’s tailored approach to mission assurance for launches awarded through the NSSL program. This assessment will showcase Neutron's ability to meet the stringent requirements of the NSSL program, further boosting investor confidence in the rocket's capabilities.

3. Development and Testing of the Archimedes Engine: The Archimedes engine is a critical component of the Neutron rocket. Rocket Lab has completed the first Archimedes development engine and is conducting a test campaign. Successful testing and qualification of the Archimedes engine will be a significant milestone, as it will demonstrate the engine's performance and reliability.

4. Construction and Qualification of Rocket Stages: Rocket Lab is building full-scale carbon composite tanks for both the first and second stages of the Neutron rocket. Successful qualification of these stages, including structural and cryogenic testing, will be essential for ensuring the rocket's structural integrity and performance. The company has already completed the qualification of Stage 2's structure and systems, with Stage 1 qualification expected to follow.

5. Launch Complex 3 Construction and Regulatory Approval: The construction of Launch Complex 3 in Wallops Island, Virginia, is complete, and Neutron has received regulatory approval to fly from this site. These milestones demonstrate Rocket Lab's readiness to launch Neutron and support the NSSL program from the U.S. East Coast.

6. Development of the Return On Investment Landing Platform: Rocket Lab is developing a sea-based landing platform, 'Return On Investment,' to enable landings at sea for its reusable Neutron rocket. This platform will support greater space access for national security missions and commercial satellite constellation deployments. The successful development and deployment of this platform will be a significant milestone, as it will enable Neutron to perform Down Range Landing (DRL) maneuvers, maximizing the rocket's performance.

Achieving these milestones will not only demonstrate Neutron's readiness for the NSSL program but also influence investor confidence in several ways. Successful completion of these milestones will validate Rocket Lab's technological capabilities, operational readiness, and commitment to the NSSL program. This, in turn, will likely lead to increased investor confidence, as it will demonstrate Rocket Lab's ability to execute on its plans and deliver on its promises. Additionally, the successful integration of Neutron into the NSSL program will open up new revenue streams for Rocket Lab, further enhancing its financial prospects and investor appeal.

In summary, Rocket Lab's selection for the NSSL program provides it with a strategic advantage by securing high-priority national security missions, demonstrating the capabilities of its Neutron rocket, and validating its expertise in mission assurance. This positions Rocket Lab as a leader in the space launch industry, setting new standards for performance, affordability, and reliability in medium-lift launch capabilities. As Rocket Lab continues to achieve key milestones with the Neutron rocket, it is poised to become a dominant player in the space launch industry, with a bright future ahead.