Rocket Lab Awarded R&D Funding from Canadian Space Agency to Develop New Reaction Wheel for Medium-Class Satellites
Rhea-AI Summary
Rocket Lab (Nasdaq: RKLB) was awarded funding by the Canadian Space Agency on Dec 9, 2025 to develop a new medium-class reaction wheel targeting a minimum angular momentum capacity of 25 Nms. The device is designed to support 500–1,000 kg satellites and will be developed and qualified at Rocket Lab's Toronto facility. Rocket Lab will receive $999,951 CAD from a broader $14.2 million CAD CSA investment in Canadian space innovation and was one of 18 selected companies.
This work builds on Rocket Lab's existing reaction-wheel heritage across >300 satellites and follows its 2020 acquisition of Sinclair Interplanetary.
Positive
- None.
Negative
- None.
Key Figures
Market Reality Check
Peers on Argus
RKLB gained 5.11% while key aerospace & defense peers were mostly flat to down, with moves between about -1.69% and +0.99%, indicating a stock-specific move tied to company news rather than a broad sector trend.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 24 | JAXA launch schedule | Positive | +0.3% | First dedicated JAXA Electron launch window and growing 2025 launch cadence. |
| Nov 20 | Record launch pace | Positive | -9.5% | Two Electron launches in two days, setting new annual launch record. |
| Nov 20 | Second launch notice | Positive | -9.5% | Announcement of another Electron mission within 48 hours, 18th annual launch. |
| Nov 18 | HASTE defense mission | Positive | -1.2% | Successful HASTE mission for DIU and MDA testing hypersonic technologies. |
| Nov 13 | Mars ESCAPADE launch | Positive | -9.4% | Twin Rocket Lab-built spacecraft began Mars journey for NASA and UC Berkeley. |
Recent operationally positive news has often been followed by negative price reactions, suggesting a pattern where strong execution headlines have not consistently translated into short-term gains.
Over the last month, Rocket Lab reported multiple operational milestones: a new record of 18 Electron launches in 2025 with 100% mission success, back-to-back launches from two hemispheres, a successful HASTE suborbital mission, and the Mars-bound ESCAPADE spacecraft launch. Despite these positive developments, several announcements saw -9% to -9.5% next-day moves. Today’s CSA-funded reaction wheel development continues the theme of expanding space systems capabilities alongside an already busy launch cadence.
Market Pulse Summary
This announcement highlights Rocket Lab’s expansion in space systems with a CSA-funded reaction wheel targeting 500kg–1,000kg satellites and at least 25 Nms capacity. The $999,951 CAD award builds on its Toronto facility’s 20+ year hardware heritage and an installed base in 300+ satellites. In context of recent record launch cadence and Mars mission contributions, investors may watch future contract wins, product qualifications, and execution against its growing systems portfolio.
AI-generated analysis. Not financial advice.
LONG BEACH, Calif., Dec. 09, 2025 (GLOBE NEWSWIRE) -- Rocket Lab Corporation (Nasdaq: RKLB) (“Rocket Lab” or “the Company”), a global leader in launch services and space systems, today announced it has been awarded funding by the Canadian Space Agency (CSA) to develop a new medium-class reaction wheel, with targeted minimum angular momentum capacity of 25 Nms, designed to support 500kg – 1,000kg satellites with larger payloads operating in low Earth orbit and beyond.
Awarded through the CSA’s Space Technology Development Program to Rocket Lab’s Canadian subsidiary, the contract aims to accelerate the development of Canadian-designed and built space technologies and strengthen the domestic commercial supply chain. Rocket Lab was one of only 18 companies selected as a part of a broader
President of Rocket Lab USA, Brad Clevenger said: “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. Designed and manufactured in Toronto, this new product will expand our portfolio with a high-performance solution tailored for next-generation applications.”
Rocket Lab currently offers a portfolio of flight-proven and affordable reaction wheels that have flown in more than 300 satellites, ranging from 1kg CubeSats to spacecraft over 1,000 kg. The new reaction wheel will be developed to support larger and wider satellites that experience significant moments of inertia, enabling the Company to serve a growing market segment and deliver even more value as an end-to-end space systems provider.
Since acquiring Toronto-based Sinclair Interplanetary in 2020, Rocket Lab has significantly expanded its footprint in Canada, designing and delivering best-in-class satellite attitude determination and control hardware to spacecraft bound for the Low Earth Orbit, Geostationary orbits, the Moon and Mars.
Rocket Lab Media Contact
Lindsay McLaurin
media@rocketlabusa.com
About Rocket Lab
Rocket Lab is a leading space company that provides launch services, spacecraft, payloads and satellite components serving commercial, government, and national security markets. Rocket Lab’s Electron rocket is the world’s most frequently launched orbital small rocket; its HASTE rocket provides hypersonic test launch capability for the U.S. government and allied nations; and its Neutron launch vehicle in development will unlock medium launch for constellation deployment, national security and exploration missions. Rocket Lab’s spacecraft and satellite components have enabled more than 1,700 missions spanning commercial, defense and national security missions including GPS, constellations, and exploration missions to the Moon, Mars, and Venus. Rocket Lab is a publicly listed company on the Nasdaq stock exchange (RKLB). Learn more at www.rocketlabcorp.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our launch and space systems operations, launch schedule and window, safe and repeatable access to space, Neutron development, operational expansion and business strategy are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “strategy,” “future,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the factors, risks and uncertainties included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as such factors may be updated from time to time in our other filings with the Securities and Exchange Commission (the “SEC”), accessible on the SEC’s website at www.sec.gov and the Investor Relations section of our website at www.rocketlabcorp.com, which could cause our actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.
FAQ
What did Rocket Lab (RKLB) announce on December 9, 2025 regarding Canada Space Agency funding?
What satellites will the new Rocket Lab reaction wheel support for RKLB?
Where will Rocket Lab develop and qualify the new reaction wheel for RKLB?
How does the new reaction wheel relate to Rocket Lab's prior hardware experience (RKLB)?
How large was the CSA program that selected Rocket Lab (RKLB) for funding?
