Rocket Lab Selected by NASA to Provide Neutron Launch Services Under VADR Launch Contract

Rhea-AI Summary

Rocket Lab (RKLB) has reached a mutual agreement with NASA to include Neutron launch services under their existing VADR (Venture-Class Acquisition of Dedicated and Rideshare) contract. The new medium-lift reusable rocket Neutron can deploy 13,000 kg to low Earth orbit and is designed for constellation deployment, national security missions, and science payloads.

Neutron's selection builds on previous awards, including an on-ramp to the United States Space Force's OSP-4 program with a $986m IDIQ contract. The rocket is also positioned for potential inclusion in the U.S. Government's National Security Space Launch (NSSL) Lane 1 program, valued at $5.6 billion over five years. The launch site at Wallops Island, Virginia, is nearing completion, with Neutron's debut launch scheduled for mid-2025.

Positive

• Secured NASA VADR contract for Neutron launch services
• Previous successful track record with NASA VADR missions using Electron rocket
• Neutron capable of deploying 13,000 kg to low Earth orbit
• Existing $986m IDIQ contract with US Space Force
• Potential inclusion in $5.6B NSSL Lane 1 program

Negative

• Neutron launch services not operational until mid-2025

Insights

Space Industry Analyst

The inclusion of Neutron in NASA's VADR contract represents a strategic milestone for Rocket Lab's market positioning. With a 13,000 kg payload capacity to LEO, Neutron fills a critical gap in the medium-lift launch market, particularly as SpaceX's Falcon 9 becomes increasingly focused on Starlink missions. The timing aligns perfectly with growing demand for constellation deployments and national security launches.

The contract builds on Rocket Lab's existing $986M IDIQ contract with the Space Force and positions them favorably for the $5.6B NSSL Lane 1 program. These government contracts provide stable, long-term revenue streams essential for scaling operations. The mid-2025 launch timeline for Neutron is ambitious but achievable given the progress on infrastructure and testing.

Government Contracts Specialist

This VADR contract modification exemplifies the government's strategic shift toward commercial launch services. The agreement's structure, building upon Electron's proven track record with NASA, demonstrates strong institutional confidence in Rocket Lab's capabilities. The combination of VADR, OSP-4 and potential NSSL Lane 1 participation creates a robust government revenue pipeline that significantly de-risks Rocket Lab's business model.

For retail investors, government contracts provide predictable revenue streams and validate technology capabilities. The three major contract vehicles (VADR, OSP-4, NSSL) position Rocket Lab as a key player in the evolving space industrial base, potentially leading to additional opportunities in adjacent markets like satellite manufacturing and space services.

Market Research Analyst

The medium-lift launch market is experiencing significant undersupply, with SpaceX increasingly focused on internal missions. Neutron's entry with NASA backing strengthens Rocket Lab's competitive position against upcoming vehicles like Blue Origin's New Glenn and ULA's Vulcan. The company's vertically integrated business model, combining launch services with spacecraft manufacturing, creates multiple revenue streams and operational synergies.

With a market cap of $13.7B, Rocket Lab's valuation reflects high growth expectations. The NASA contract adds credibility to their expansion strategy and validates their technical approach. The mid-2025 launch timeline positions them to capture growing demand from commercial constellation deployments and government missions, potentially leading to significant revenue growth in 2025-2026.

LONG BEACH, Calif.--(BUSINESS WIRE)-- Rocket Lab USA, Inc. (Nasdaq: RKLB) (“Rocket Lab” or “the Company”), a global leader in launch services and space systems, today announced a mutual agreement with NASA has been reached to include Neutron launch services to the agency through Rocket Lab’s existing VADR (Venture-Class Acquisition of Dedicated and Rideshare) contract.

Rocket Lab’s new medium-lift reusable rocket Neutron allows the opportunity for Rocket Lab to continue broadening access to space to deliver multiple missions across a range of orbits, including CubeSats, Class D missions, and other payloads. With its small orbital launch vehicle Electron already on-ramped for NASA’s VADR missions, Rocket Lab has previously demonstrated time-sensitive back-to-back launches within two weeks for the VADR PREFIRE missions and completed a similar fast turnaround of two launches in May 2023 for the VADR TROPICS missions.

Neutron is designed to provide both commercial and government customers with an alternative reliable launch service capable of deploying 13,000 kg to low Earth orbit. Neutron is tailored to deploy constellations and national security missions as well as science and exploration payloads. In addition to serving customers, Neutron is key to Rocket Lab’s strategy as an end-to-end space company capable of building, launching and operating its own constellations and delivering services from space in the future.

Rocket Lab founder and CEO, Sir Peter Beck, says: “Neutron brings choice and value to the launch industry and is the ideal rocket to support NASA’s goals with VADR to provide new opportunities for science and technology payloads through commercial best practice. Rocket Lab has been a long trusted and reliable launch partner for NASA missions with Electron, and we’re proud to have been selected to expand on this with Neutron.”

Neutron is strongly positioned to capitalize on the medium-lift launch requirements for future government and commercial missions. The selection of Neutron for the VADR contract builds on previous awards for the new launch vehicle, including an on-ramp to the United States Space Force’s OSP-4 program, a separate $986m IDIQ contract. Neutron is also ideally placed to be on-ramped on to the U.S. Government’s National Security Space Launch (NSSL) Lane 1 program, an IDIQ contract valued at $5.6 billion over a five-year period.

Significant progress continues to be made on the rocket’s launch site on Wallops Island, Virginia, with the site’s completion expected in the coming months. Production, infrastructure scaling, and both Archimedes engine and full-scale components testing is continuing at pace across Rocket Lab’s various production and test facilities throughout the United States. Neutron is scheduled for its debut launch from Rocket Lab Launch Complex 3 in Virginia from mid-2025.

+ About Rocket Lab

Founded in 2006, Rocket Lab is an end-to-end space company with an established track record of mission success. We deliver reliable launch services, satellite manufacture, spacecraft components, and on-orbit management solutions that make it faster, easier, and more affordable to access space. Headquartered in Long Beach, California, Rocket Lab designs and manufactures the Electron small orbital launch vehicle, a family of flight proven spacecraft, and the Company is developing the large Neutron launch vehicle for constellation deployment. Since its first orbital launch in January 2018, Rocket Lab’s Electron launch vehicle has become the second most frequently launched U.S. rocket annually and has delivered 200+ satellites to orbit for private and public sector organizations, enabling operations in national security, scientific research, space debris mitigation, Earth observation, climate monitoring, and communications. Rocket Lab’s family of spacecraft have been selected to support NASA missions to the Moon and Mars, as well as the first private commercial mission to Venus. Rocket Lab has three launch pads at two launch sites, including two launch pads at a private orbital launch site located in New Zealand and a third launch pad in Virginia. To learn more, visit www.rocketlabusa.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, 2023, 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.rocketlabusa.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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250109596430/en/

+ Rocket Lab Media Contact

Murielle Baker

media@rocketlabusa.com

Source: Rocket Lab USA, Inc.

FAQ

When is Rocket Lab's (RKLB) Neutron rocket scheduled for its first launch?

Rocket Lab's Neutron rocket is scheduled for its debut launch from Launch Complex 3 in Virginia from mid-2025.

What is the payload capacity of RKLB's Neutron rocket?

The Neutron rocket is capable of deploying 13,000 kg to low Earth orbit.

What is the value of RKLB's Space Force OSP-4 contract for Neutron?

Rocket Lab has secured a $986 million IDIQ contract with the US Space Force for the OSP-4 program.

What types of missions will RKLB's Neutron rocket serve under the NASA VADR contract?

Under the VADR contract, Neutron will serve multiple missions including CubeSats, Class D missions, constellation deployments, national security missions, and science payloads.

Where will RKLB's Neutron rocket launch from?

The Neutron rocket will launch from Rocket Lab's Launch Complex 3 at Wallops Island, Virginia.