Pentagon awards Rocket Lab $266 million for suborbital hypersonic test launches

Contract Overview

The U.S. Space Systems Command has awarded Rocket Lab USA a $266 million contract for suborbital launch services, according to a Department of War contract announcement. The agreement covers 12 confirmed launches with an option for six additional missions, all to be conducted through December 31, 2028.

Key details:

• Launch site: Pacific Spaceport Complex, Kodiak Island, Alaska
• Fiscal 2025 funding obligated at award: $112 million
• Contract type: Firm-fixed-price completion contract

Vehicle and Mission Profile

While the contract announcement does not specify the rocket or payloads, the scope of work points to Rocket Lab's HASTE (Hypersonic Accelerator Suborbital Test Electron) vehicle. HASTE is a suborbital variant of the company's Electron rocket, which the Department of War has used since 2023 for hypersonic weapons technology testing.

HASTE specifications:

• Replaces Electron's upper stage with a modified kick stage for mid-flight payload release
• Maximum payload capacity: 700 kg (1,540 lb)
• Designed to test scramjet engines, heat-resistant materials, guidance systems, and other hypersonic components

Shift to Alaska Launch Site

All seven HASTE missions flown publicly to date—since the vehicle's June 2023 debut—launched from Rocket Lab's Launch Complex 2 in Wallops Island, Virginia, supporting the Multi-Service Advanced Capability Hypersonic Test Bed program.

The new contract instead designates the Pacific Spaceport Complex in Alaska, a state-owned site on Kodiak Island that has previously hosted classified Department of War missile tests, including a hypersonic weapons test in 2025 observed by local residents without advance public notice.

Strategic advantage: A Pacific-facing launch corridor enables flight path tracking over open ocean toward potential targets or splashdown zones—capabilities not available from Virginia's Atlantic coast location.

Contract Structure and Significance

The firm-fixed-price completion structure indicates Pentagon confidence in Rocket Lab's ability to reliably deliver a well-understood service. The contract emerged from a competitive process involving three companies submitting offers.

Funding breakdown:

• $112 million obligated from fiscal year 2025 research, development, test, and evaluation funding
• Remaining value tied to optional additional launches

Broader Context and Market Reaction

This award follows the Space Force naming Rocket Lab and SpaceX among seven companies selected for the National Security Space Launch Phase 3 Lane 1 program—a separate initiative with a $17 billion ceiling for future national security launches.

Investor response: Rocket Lab shares rose as much as 9% in after-hours trading following the announcement, despite the stock having fallen more than 50% from its 2026 highs earlier this year amid delays to Neutron, the company's larger reusable rocket under development.