OHB and Rheinmetall form joint venture for Bundeswehr satellite project

Earlier in the year, the "Handelsblatt" and the "Financial Times" reported, citing people familiar with the matter, that OHB and Rheinmetall were bidding together for the Bundeswehr's largest satellite project to date. The contract value of the Bundeswehr satellite project is reported to amount to up to ten billion euros, according to those reports.

Berlin's space security strategy

The German government laid the policy groundwork in November when it presented its first space security strategy. Im Zentrum steht dabei der Schutz von Satelliten und Kommunikationstechnik. The space security strategy aims to make Germany "credibly capable of deterrence and defense," according to the government.

Defense spending figures underline the scale of the planned investment. By 2030, Germany's Federal Ministry of Defence alone plans to make 35 billion euros available from its budget for spaceflight and space security, underlining the strategic weight Berlin is placing on orbital assets.

Bremen welcomes the partnership

The joint venture is registered in Bremen, and local officials were quick to welcome the announcement. Bremen's mayor Andreas Bovenschulte (SPD) commented at the registration in the Bremen commercial register that the cooperation demonstrates Bremen's growing role as a hub for maritime and space defense. "Die neue Kooperation belege, dass Bremen sich immer weiter zur Schaltzentrale der See- und Weltraumverteidigung entwickele," he said.

Bovenschulte also pointed to the economic benefits for the region. Mayor Andreas Bovenschulte said the project will create many hundreds of new and secure jobs along the Weser river. "Sie schaffe neue und sichere viele hundert Arbeitsplätze an der Weser," he added. In a separate remark, he said: "Die Entscheidung stärke die Rolle der Stadt als Technologiestandort im Nordwesten."

Market reaction

Financial markets reacted to news of the formal partnership. On Thursday, the Rheinmetall share traded as much as 1.54 percent higher at 1,215.60 euros in XETRA trading, while OHB shares gained 5.45 percent to 387.00 euros, reflecting investor expectations that the joint bid strengthens both companies' positioning in the lucrative defense and space segment.

The structure of the new company concentrates OHB's satellite-building expertise alongside Rheinmetall's broader defense-systems portfolio. OHB is a satellite manufacturer, while Rheinmetall is an armaments and defense group, and the joint venture is intended to offer the Bundeswehr a single point of accountability for an end-to-end secure communications network in orbit and on the ground.

The project forms part of a broader push by Berlin to treat space as a contested operational domain. With the new strategy in place and significant budget earmarked through 2030, officials expect satellite communications, protected data links, and cyber defense to become a central pillar of Bundeswehr planning, alongside traditional land, air, and sea capabilities.