Lockheed Martin is deepening its investments with satellite manufacturer Terran Orbital. The aerospace giant has invested USD 100 million in the company, concluding a cooperation agreement on the development and sale of small satellites until 2035.
Lockheed Martin acquired debt obligations and shares of the manufacturer. Terran shares rose 2.3% during trading and closed at USD 2.62 per share after jumping 33% earlier in the day. Since the beginning of the year, the shares have fallen by more than 70%.
Terran also announced that the investment will help build a huge USD 300 million spacecraft manufacturing plant in Irvine, California, and not in Florida as originally planned. CEO Mark Bell told the press that the company decided to move the plant to California. The abandonment of the Florida plant turned out to be a big loss for Space Florida, the state’s economic development agency dealing with the aerospace industry, which was going to provide financing for the plant.
Terran Orbital and the US Department of Defense
Terran Orbital, located in Boca Raton, Florida, designs and builds satellites for the U.S. government and commercial clients. Approximately 95% of the company’s orders are related to the Ministry of Defense and NASA.
Lockheed Martin made its first investment in Terran back in 2017. The following year, the company received an investment of USD 36 million. New funds from Lockheed will be used to purchase additional assembly areas and increase the production of satellite modules. The small satellite manufacturer said it plans to expand its offering to include a line of synthetic aperture satellite radars, as well as satellite components and assemblies such as reaction wheels and star trackers.
Initially, the company planned to launch and use its SAR satellite group called PredaSAR, but decided to abandon these plans and offer the technology as a product. Terran Orbital said the war in Ukraine demonstrated the importance of advanced satellite imagery.
According to CNBC
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