SpaceX rival Rocket Lab on Thursday was tapped to compete for a $5.6 billion contract from the U.S. Space Force. RKLB stock rose on Friday.
Rocket Lab announced it was selected by the Space Force to compete for high-priority national security missions as part of the National Security Space Launch (NSSL) Phase 3 Lane 1 program. The contract runs through June 2029 with a maximum value of $5.6 billion. It also includes an option for an additional five-year order period.
The contact would award a minimum of 30 missions through 2029.
Rocket Lab was one of five firms selected for the contract, which includes launch services delivering NSS payloads to their intended orbits. Stoke Space was also selected on Thursday. The pair join Blue Origin, SpaceX and ULA, who were added to the program last year. Both companies received a $5 million task order to perform a capabilities demonstration.
Rocket Lab plans to use its Neutron launch vehicle for the program. The Neutron is a 13-ton, reusable rocket that is designed for payloads up to 13,000 kg. The Neutron's first launch is scheduled for the second half of the year. Once a successful fight is completed, Rocket Lab will be eligible to compete for further individual task orders awarded in the NSSL program.
Rocket Lab Stock
RKLB stock advanced 1% Friday. Shares jumped 8% in premarket trade. The stock been posting tight weekly closes, down almost 27% this year. Rocket Lab has tumbled from its Jan. 24 record high of 33.34.
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