SpaceX has won a $1.6 billion contract from the US Space Force to carry out 18 Falcon 9 rocket launches that will put military satellites into orbit. The satellites will help the US military detect and track airborne threats from space.
The US Space Force announced the deal on Wednesday. According to Reuters, all 18 missions will launch from Vandenberg Space Force Base in California and are expected to be completed by the end of 2027.
Biggest batch of missions under the program
The 18 launches have been divided into two task orders under the National Security Space Launch (NSSL) Phase 3 Lane 1 program. This is the Space Force’s main program for buying launch services from private companies.
Under this system, companies compete for each mission instead of being guaranteed a certain number of launches. SpaceX competes with firms such as United Launch Alliance (ULA), Blue Origin and other approved launch providers for these contracts.
According to SpaceNews, this is the largest publicly announced group of missions awarded under the Phase 3 program so far.
What these satellites are meant to do
The satellites launched under this contract will support the Space Force’s Space-Based Sensing and Targeting program.
Their job will be to spot, track and share information about airborne threats much faster than before. The satellites are designed to provide near real-time information, helping the military respond more quickly to potential threats.
Space Systems Command announced on July 29 that it will award two task orders to SpaceX for missions using the company’s reusable Falcon 9 rocket. Space Force says the deal moved at record speed
Eric Zarybnisky, a Space Force acquisition official, described it as an “unprecedented two-month acquisition timeline,” according to a Space Force news release cited by MarketScreener.
The faster process is seen as an important step for the military, which has spent years trying to speed up how it buys satellites and launch services from private companies.
Government support grows even as SpaceX stock struggles
The new Space Force contract comes at a time when SpaceX is facing pressure in the stock market.
The company, which went public in June, has seen its shares lose about 30% from their debut price and more than 50% from their record high of $225.64.
The stock has remained under pressure as investors worry about the upcoming share lock-up period ending in early August. Once the restriction is lifted, hundreds of millions of additional shares could enter the market, something that often raises concerns about selling pressure.
Despite the stock’s recent weakness, the Pentagon has continued to place its trust in SpaceX. Military contracts are awarded based on factors such as a company’s launch capabilities, reliability, pricing and its ability to meet mission deadlines, rather than its share price.
SpaceX continues to stand out because its Falcon 9 rocket has built a long track record of successful missions over more than a decade. It is also the only American rocket with the proven experience needed to support the rapid launch schedule required from Vandenberg Space Force Base.
Part of a much bigger Pentagon plan
This latest contract adds to a series of major Pentagon deals that SpaceX has secured this year.
Reuters reported that SpaceX has now received at least $7 billion in Pentagon contracts in 2026. Much of this work is linked to the Trump administration’s Golden Dome missile defence project, a long-term program expected to cost around $185 billion, in which SpaceX plays a major role.
The new contract comes after two other large awards connected to the same sensing and targeting mission.
According to MarketScreener, SpaceX first received a $4.16 billion contract to build a network of satellites that can track moving airborne targets. Just three days later, the company was awarded another $2.29 billion contract to develop communication satellites that will quickly send data between missile-warning sensors and missile interceptors.
Questions over SpaceX’s growing role
As SpaceX continues to win more Pentagon contracts, some lawmakers in Washington have raised concerns that the U.S. military could become too dependent on a single company.
In response, Space Force officials have said they want to encourage more competition and help more companies take part in national security space missions.
Rivals are dealing with major setbacks
While SpaceX continues to win new work, two of its biggest competitors are facing technical problems.
United Launch Alliance (ULA), the joint venture between Boeing and Lockheed Martin, is currently dealing with a months-long investigation into a faulty booster separation system on its Vulcan rocket. The rocket has been certified to launch Pentagon satellites, but the investigation has created uncertainty around its operations.
Meanwhile, Blue Origin, the space company founded by Jeff Bezos, is investigating why its New Glenn rocket exploded on the launch pad in May before its fourth flight.
The rocket is also part of the Space Force’s launch program, but it is expected to remain grounded until at least the end of the year while the investigation continues.