1. Rocket Lab awarded funding by Canadian Space Agency for reaction wheel development. 2. Funding supports medium-class wheels for satellites 500-1,000kg in low Earth orbit. 3. Rocket Lab aims to enhance its product portfolio and market position. 4. Investment is part of a $14.2 million initiative for Canadian space innovation. 5. Rocket Lab's Toronto facility has been key in developing satellite technologies.
FAQ
Why Bullish?
The funding indicates confidence in Rocket Lab's innovative capabilities and market expansion. Historical similar partnerships have led to increased investor interest and stock price growth.
How important is it?
The article discusses crucial funding advancements that could positively affect Rocket Lab’s growth trajectory. Long-term investments generally significantly impact company valuation.
Why Long Term?
This partnership could lead to sustained revenue growth as demand for satellite technology rises. Historically, strategic alliances in aerospace have yielded long-term profitability.
Rocket Lab Secures R&D Funding from Canadian Space Agency for New Reaction Wheel Development
Long Beach, Calif., Dec. 09, 2025 (GLOBE NEWSWIRE) — Rocket Lab Corporation (Nasdaq: RKLB), a pioneering force in launch services and space systems, has announced it has received funding from the Canadian Space Agency (CSA) to innovate a new medium-class reaction wheel. This advanced reaction wheel targets a minimum angular momentum capacity of 25 Nms and is designed to enhance satellite capabilities for 500kg to 1,000kg payloads operating in low Earth orbit and beyond.
Funding Details and Objectives
The contract, awarded through the CSA’s Space Technology Development Program to Rocket Lab’s Canadian subsidiary, aims to expedite the creation of Canadian-designed and built space technologies while reinforcing the domestic commercial supply chain. Rocket Lab was among 18 companies chosen for a broader $14.2 million CAD investment in Canadian space innovation, receiving $999,951 CAD for this development.
This new reaction wheel's development will take place at Rocket Lab’s Toronto facility, which has served as a foundational element of Canada's satellite hardware ecosystem for over two decades.
Implications for Satellite Technology
Brad Clevenger, President of Rocket Lab USA, stated: “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 newly developed reaction wheel will cater to larger and wider satellites that experience considerable moments of inertia, allowing Rocket Lab to tap into a growing market segment and enhance its value as a comprehensive space systems provider.
Rocket Lab’s Growing Presence in Canada
Since the acquisition of Toronto-based Sinclair Interplanetary in 2020, Rocket Lab has significantly expanded its operations in Canada. The company now designs and delivers industry-leading satellite attitude determination and control hardware for various missions, including Low Earth Orbit, Geostationary orbits, and Space missions to the Moon and Mars.
About Rocket Lab
Rocket Lab is at the forefront of the space industry, providing launch services, spacecraft, payloads, and satellite components to commercial, government, and national security markets. The company’s Electron rocket is renowned as the world’s most frequently launched small orbital rocket, while its HASTE rocket enables hypersonic test launches for the U.S. government and allied nations. Rocket Lab is also developing the Neutron launch vehicle, which aims to fulfill medium launch capacities for constellation deployments and national security operations.
With a track record of over 1,700 missions across commercial, defense, and national security sectors—encompassing GPS constellation deployments and lunar explorations—Rocket Lab is a publicly traded company on the Nasdaq stock exchange under the symbol RKLB.
Forward-Looking Statements
This announcement contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from projected outcomes. For a comprehensive discussion of risks, please refer to Rocket Lab’s filings with the Securities and Exchange Commission, accessible on the SEC’s website and the Investor Relations section of Rocket Lab’s website.