Rocket Lab Soars on $23.9M CHIPS Act Funding Agreement
The investment, aimed at boosting solar cell production for spacecraft, is expected to create over 100 new manufacturing jobs.
Rocket Lab USA, Inc. (Nasdaq: RKLB) has announced a preliminary agreement for up to $23.9 million in funding under the CHIPS and Science Act, a move that will significantly expand its production of space-grade solar cells. The investment is earmarked for the expansion and modernization of Rocket Lab's facility in Albuquerque, New Mexico, and is projected to create over 100 new manufacturing jobs.
The funding is expected to boost Rocket Lab's compound semiconductor production by 50% within the next three years, a critical step in strengthening the domestic supply chain for components essential to national defense and commercial satellites. The State of New Mexico has also pledged an additional $25.5 million in financial support.
"Semiconductors are central to modern life, to our economy, and to America's future," said Rocket Lab founder and CEO, Sir Peter Beck. "We are proud to be strengthening that future with the support of the CHIPS Office by expanding our production facilities to meet growing demand for the semiconductors that power the nation's most critical science, defense and commercial space missions."
Rocket Lab's strategic move into this sector was solidified with its 2022 acquisition of SolAero Technologies Inc., making it one of only two domestic companies specializing in the production of highly efficient and radiation-resistant space-grade solar cells. These solar cells are crucial for powering a wide range of space programs, including missile awareness systems, the James Webb Space Telescope, and NASA’s Artemis lunar explorations, as well as commercial satellite constellations like OneWeb.
New Mexico Governor Michelle Lujan Grisham praised the development, stating, "New Mexico’s space economy is growing every day, and Rocket Lab’s expansion will bring more than 100 new jobs to New Mexico. This is just the latest example of how the CHIPS and Science Act is fueling new technology and high-wage jobs.”
The proposed investment underscores the broader goals of the CHIPS and Science Act to bolster the U.S. semiconductor industry, reduce reliance on foreign supply chains, and foster innovation in critical technologies. For Rocket Lab, this funding represents a significant vote of confidence in its capabilities and a crucial step in scaling up its space systems operations.