Rocket Lab USA (RKLB, Financial) has recently secured a $23.9 million contract from the U.S. Department of Commerce to enhance its semiconductor manufacturing capabilities at its Albuquerque, New Mexico facility. This funding will improve Rocket Lab's production of compound semiconductors, which are critical to the operation of space-grade solar cells that power satellites. These solar cells are strategically important for both national security applications and commercial satellite programs.
The growing use of satellites for broadband services, weather forecasting, remote sensing, and navigation has driven the expansion of the satellite solar cell materials market. According to experts and government sources, the global satellite materials market is expected to reach $111.46 billion by 2032 as satellite programs continue to gain momentum from various governments and the demand for better communication and space research increases.
Rocket Lab's expertise in solar cell manufacturing has already powered more than 1,100 satellites, including those supporting NASA's Artemis lunar program and the James Webb Space Telescope. The ongoing expansion at the Albuquerque facility will help meet the increasing demand for these components.
The Department of Commerce funding is expected to enhance Rocket Lab's market position and drive significant revenue growth. With over 25 years of experience and a strong track record in the market, Rocket Lab is well-positioned to make substantial gains in the satellite solar cell materials sector, supporting the continued advancement of space exploration and satellite services.
