Rocket startup ABL Space gets giant Lockheed Martin launch contract
Capitalism in space: Smallsat rocket startup ABL Space, which has yet to launch its first test rocket, has won a gigantic launch contract from Lockheed Martin for as many as 58 launches through 2029.
Under terms of the block-buy agreement between ABL Space Systems and Lockheed, the aerospace giant will purchase “up to” 26 launches through 2026 and as many as 32 additional launches through 2029. If the terms are fulfilled, this would come to 58 launches over the next eight years for ABL Space. In an industry where even a single launch contract often produces a news release, a contract for five dozen launches is unprecedented for a private company.
…The partnership will allow Lockheed, which builds large numbers of satellites for commercial customers, frequent and low-cost access to space. It is perhaps not a surprise that Lockheed selected ABL Space for its small launch needs, as Lockhead was an early investor in the launch company during a seed phase in 2019 and has continued to participate in additional rounds of fundraising. ABL has raised a total of $219 million to date.
Though Lockheed Martin is not ABL’s biggest investor, by being an early investor it has been involved in the development of ABL’s RS1 rocket from the start, which also means that Lockheed Martin was essentially buying its own rocket company to place the satellites it makes into orbit.
In fact, this decision falls into line with what appears to be Lockheed Martin’s long term corporate strategy. In 2017 the company opened its satellite-making factory with the satellites designed with standardized structures so that customers could pick and choose the design of their liking.
In 2018 it was revealed that the company was a key investor in Rocket Lab, while also participating in the creation of the United Kingdom’s first spaceport in Sutherland, Scotland.
It then decided to become a major investor in ABL, probably taking advantage of what it learned from Rocket Lab to improve the design. Now it plans to use that new rocket to launch a large number of the smallsats it is building in its factory.
Lockheed Martin is essentially copying SpaceX’s vertical integration strategy, whereby it owns or builds all aspects of its launch business. This allows it to reduce costs while controlling construction entirely. You cut out the middle man, and make your satellites cheaper to sell to others.
The first launch of ABL’s RS1 rocket was originally scheduled for the first half of this year, but has now been pushed back to the third quarter. If successful the company says it will follow it with two more launches before the end of the year, and very ambitious schedule.
Readers!
Please consider supporting my work here at Behind the Black. Your support allows me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Only now does it appear that Washington might finally recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
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Capitalism in space: Smallsat rocket startup ABL Space, which has yet to launch its first test rocket, has won a gigantic launch contract from Lockheed Martin for as many as 58 launches through 2029.
Under terms of the block-buy agreement between ABL Space Systems and Lockheed, the aerospace giant will purchase “up to” 26 launches through 2026 and as many as 32 additional launches through 2029. If the terms are fulfilled, this would come to 58 launches over the next eight years for ABL Space. In an industry where even a single launch contract often produces a news release, a contract for five dozen launches is unprecedented for a private company.
…The partnership will allow Lockheed, which builds large numbers of satellites for commercial customers, frequent and low-cost access to space. It is perhaps not a surprise that Lockheed selected ABL Space for its small launch needs, as Lockhead was an early investor in the launch company during a seed phase in 2019 and has continued to participate in additional rounds of fundraising. ABL has raised a total of $219 million to date.
Though Lockheed Martin is not ABL’s biggest investor, by being an early investor it has been involved in the development of ABL’s RS1 rocket from the start, which also means that Lockheed Martin was essentially buying its own rocket company to place the satellites it makes into orbit.
In fact, this decision falls into line with what appears to be Lockheed Martin’s long term corporate strategy. In 2017 the company opened its satellite-making factory with the satellites designed with standardized structures so that customers could pick and choose the design of their liking.
In 2018 it was revealed that the company was a key investor in Rocket Lab, while also participating in the creation of the United Kingdom’s first spaceport in Sutherland, Scotland.
It then decided to become a major investor in ABL, probably taking advantage of what it learned from Rocket Lab to improve the design. Now it plans to use that new rocket to launch a large number of the smallsats it is building in its factory.
Lockheed Martin is essentially copying SpaceX’s vertical integration strategy, whereby it owns or builds all aspects of its launch business. This allows it to reduce costs while controlling construction entirely. You cut out the middle man, and make your satellites cheaper to sell to others.
The first launch of ABL’s RS1 rocket was originally scheduled for the first half of this year, but has now been pushed back to the third quarter. If successful the company says it will follow it with two more launches before the end of the year, and very ambitious schedule.
Readers!
Please consider supporting my work here at Behind the Black. Your support allows me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Only now does it appear that Washington might finally recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation or subscription:
4. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above.
Smarter than Boeing. Their plan is a death by a thousand cuts upon their foes.
Can we now send all the Liberal democrats to Mars and Leave them there?