Mentioned:
RKLB -8.21% KTOS -7.69%

Rocket Lab has rapidly become one of the most important space companies in the world. Now, they’re getting in on defense and national security too.

‍What’s happening:‍

  • Rocket Lab (NASDAQ: RKLB) has been selected to join the Multi-Service Advanced Capability Hypersonic Test Bed 2.0 program which was created by the United States Department of Defense

Why it matters:‍

  • The team Rocket Lab is joining is led by Kratos Defense & Security Solutions (NASDAQ: KTOS) and also includes participation from some of the other most important national security companies in America

By the numbers:‍

  • The total contract is worth up to $1.45B USD over 5 years
  • Rocket Lab will use their Hypersonic Accelerator Suborbital Test Electron rocket which is capable of carrying up to 700 kilograms of weights

Going deeper:‍

  • Hypersonic flight testing is enormously important for developing hypersonic capabilities for the American military, which could unlock an entirely new opportunity for Rocket Lab to generate meaningful revenue

The intrigue:‍

  • Both the University of Minnesota and Purdue University are also involved in the Multi-Service Advanced Capabilities Hypersonic Test Bed 2.0 program

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