Rocket Lab is on the verge of securing approximately $24 million in federal funding to significantly ramp up production of its compound semiconductors, also referred to as solar cells. These vital components provide power to satellites and spacecraft.
The investment, designated for Rocket Lab’s subsidiary SolAero Technologies, is expected to increase compound semiconductor production by 50% over the next three years. Rocket Lab’s solar cells have played a key role in powering hundreds of satellites and spacecraft, including major scientific projects like the James Webb Space Telescope and commercial constellations like OneWeb’s satellite internet network.
The U.S. Department of Commerce announced on Tuesday a non-binding preliminary agreement to provide the funding.
“Solar cells are crucial in powering our communication and space technology, and this proposed funding will help our military, NASA, and our commercial space industry access the specialized semiconductors they need,” said Commerce Secretary Gina Raimondo in a statement.
In addition to the federal funding, the state of New Mexico, where SolAero is headquartered, has pledged financing and incentives totaling $25.5 million. This additional support will aid in the expansion of facilities in Albuquerque and the creation of more than 100 direct manufacturing jobs, according to a statement from Rocket Lab.
The proposed funding is part of a $52.7 billion fund established by the passage of the CHIPS and Science Act by President Joe Biden in 2022. Its purpose is to revitalize domestic semiconductor manufacturing and strengthen the country’s domestic supply chain resilience.
Rocket Lab acquired SolAero, which operates a ~115,000-square-foot manufacturing facility, in 2022 for $80 million. The company is one of just two in the United States that specializes in producing space-grade, radiation-resistant compound semiconductors, also known as space-grade solar cells. SolAero is highly vertically integrated, with capabilities in manufacturing not only solar cells but also solar panels and power modules.
