Rocket Lab boosts its space systems divison in quest to become an “end-to-end space company”

Peter Beck hasn’t been shy about his intention to grow Rocket Lab into more than just a launch provider, but a fully vertically integrated space company that makes spacecraft in addition to sending them to orbit. The company, which he founded in 2006, has taken yet another major stride toward that goal with the news Wednesday that it will open a new production facility to manufacture satellite components at a larger scale than ever before.

The facility will manufacture reaction wheels, critical attitude and stability control systems on satellites. Rocket Lab says the facility, which will be operational in the fourth quarter of this year, will be capable of producing up to 2,000 reaction wheels annually. Given that spacecraft generally have between 3 and 4 reaction wheels, it’s safe to assume that Rocket Lab customers likely have around 500 individual satellites ready in the pipeline to accept these components. “These are these are large volumes of supply across multiple constellations,” Rocket Lab CEO Beck said in a recent interview with TechCrunch.

The news is a marked expansion for Rocket Lab’s space systems business, which is already kept busy by the in-house Photon spacecraft and was boosted last year when the company acquired major satellite hardware manufacturer Sinclair Interplanetary. Rocket Lab also offers bespoke Photons for individual use cases – it will be designing the vehicles for forthcoming launches with space manufacturing startup Varda Space Industries and two Photons that will be sent to Mars on an upcoming science mission.

Historically, spacecraft components have generally been produced on the scale of tens or hundreds, because the barriers to get to orbit were so high. But as the cost of launch has declined (thanks in part to innovations from companies like Rocket Lab) more and more entities are able to send projects to space. That means more satellites, and more reaction wheels. Even today, there are around 200 Rocket Lab-made reaction wheels in orbit, so 2,000 in a single year is a huge jump in scale.

It’s all part of Rocket Lab’s goal of being a fully-integrated space services company. A major benefit from the vertical integration for customers, Rocket Lab says, is slashed manufacturing lead times. Beck said that when the company first started producing Photons, they quickly encountered months-long delivery times for reaction wheels, which effectively pushed back their timeline for launching one to orbit.

“If the space economy is to grow in the way that it’s predicted, then this has to be solved,” he said. “This is a fundamental problem that has to be solved. The whole space supply chain is characterized by small scale operations that really lack the ability to produce volume in any scale.”

Rocket Lab will be hiring more than 16 roles to support the space systems division and the new production facility, which will otherwise be highly automated; the company said in a statement that the production tools and environmental testing workstations will all be automated, and the metal machining is optimized to operate unattended. Beck said these techniques are very much in line with Rocket Lab’s other manufacturing processes – he pointed to Rosie the Robot as a cornerstone of the company’s capacity to use automation to rapidly scale its products.

Beck stayed mum about whether the company is planning on scaling the production of other spacecraft components, like the star trackers navigation tool, which Rocket Lab also manufacturers. However, he did say that the company plans on introducing new products – what those will be will, he declined to specify. But Beck’s stated aim when he started the space systems division is that “everything that goes to space should have a Rocket Lab logo on it.”

That aim goes to Rocket Lab’s larger vision, which is becoming an end-to-end space company: combining launch services with spacecraft manufacturing to be able to build in-orbit infrastructure.

“When you combine those things together, you have an immensely powerful platform that you can use to develop infrastructure in orbit and ultimately provide services,” he said.

But when asked what kinds of services he was thinking of, Beck played it close to the chest, instead choosing to give a well-known example from a competitor: SpaceX’s Starlink internet satellite project, which it builds and launches itself. He stayed mum on what kinds of ventures Rocket Lab might pursue, just saying that the vertical integration gives the company the ability to try new business models.

“The marginal cost for us to experiment is very, very low.”

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