Closing Bell - Manifest Space: National Security Space Launch’s New Partners with Rocket Lab CEO Peter Beck 3/28/25

Episode Date: March 28, 2025

The U.S. Space Force has tapped Rocket Lab and startup Stoke Space to join the National Security Space Launch program as part of NSSL’s Phase 3 Lane 1 category. For Rocket Lab, it represents a big opportunity for its new Neutron rocket, a medium-lift vehicle under development. Founder & CEO Peter Beck joins Morgan Brennan to discuss the new award, the timeline for Neutron, and Rocket Lab’s company outlook.

The U.S. Space Force has tapped Rocket Lab and startup Stokes Space to join the National Security Space Launch Program, as part of NSSL's Phase 3 Lane 1 category. What it means. They will compete for launch contracts worth up to $5.6 billion over the next four years. And that Rocket Lab and Stokes Space are joining an elite club of rocket makers, greenlit by the Pentagon to potentially transport the most sensitive national security payloads. A club that includes SpaceX, Blue Origin, and United Launch Alliance. For Rocket Lab, it represents a big opportunity for its new Neutron rocket, a medium lift

vehicle under development that's exponentially more powerful than the company's workhorse, Electron. On this episode, Rocket Lab's CEO and founder, Sir Peter Beck, joins me to discuss the new award, the timeline for Neutron, and how it all propels Rocket Lab toward a grander vision. I'm Morgan Brennan, and this is Manifest Space. Joining me now, Peter Beck, the CEO and founder of Rocket Lab. Fresh off of the news that you've been down selected for the National Security Space Launch Phase 3 Lane 2 competition to begin attempt or competing to with your new, launch payloads for national security purposes here in the next couple of years.

What's the significance of this award? Yeah, no, thanks, Morgan. Actually, we're really significant. So there's only a very, very small number of folks that get trusted with the job of delivering some of the nation's most sensitive assets. So to be down selected and now capable and eligible to bid on those task orders, to deliver those, firstly, it's a huge responsibility, but also that's a $5.6 billion financial opportunity

that's opened up for us. And so what does that mean when we talk about this $5.6 billion financial opportunity that's opened up for us. And so what does that mean when we talk about this $5.6 billion opportunity? It's over the next four years. You're now part of this program, but you still have to compete for tranches of launches? Yeah, that's right, that's right. So the way the national security space system works

is that you have two lanes, lane one and lane two. And this is lane one, as you pointed out, which, you know, and appropriated to that lane one is that $5.6 billion. And then, you know, there's a very, very small number of providers that can compete for the various contracts over the next few years to deliver the spacecraft. So it's kind of like riding an elevator to the very top floor to an exclusive club. You have to earn your way up there, but now you can compete for those projects. And so the exclusive club already includes SpaceX,

United Launch Alliance, Blue Origin. Now it includes Rocket Lab and another startup, Stokespace, as well. So you compete against all of these different entities for these future contracts? Yeah, it depends if the incumbents drop down into lane one and compete for this work. There's nothing stopping them from doing that. But the Space Force has been trying to get new entrances and new competitors into service these opportunities because for the longest time it was just one,

it was just ULA and then famously SpaceX sued their way in to also compete for those. And then we were a strong advocate for breaking it up into two different lanes where some of the less sensitive payloads could be competed down into the lane one. And so now the US government has another couple of opportunities or alternatives for launching the competition.

So you have a small rocket, Electron, that is already sending payloads to space, including national security payloads. But this is tied to the new rocket, the more powerful rocket that you have under development, Neutron. Is the plan still to fly that for the first time later this year?

Yeah, absolutely, yes. You don't know this, and part of being onboarded onto this was you have to show a credible path to first flight this year. So, yep, no, absolutely we will have that on the pad this year for sure. And then what should we expect in terms of the reusability component of that, getting certified to be able to compete for some of these national security launches and then carrying payloads for other customers? Yeah, so I mean first flight this year and next year we intend to fly a minimum of three launches in the following year, a minimum of five. And you know that's really, you know, you know from our experience with Electron that's a good cadence to, you know cadence to operate in. And we already have, obviously,

commercial customers for Neutron, but we're always conscious to make sure that we were able to ensure that we had capability and capacity for our US government customer. So that's kind of the launch cadence. And the first vehicle, we'll do a soft splash down and provided we're happy with that, then we'll slip our newly minted landing barge

underneath the next one, aptly named return on investment. And then we'll continue to scale from there. And so whether it is contracts to launch for the US government or for commercial customers, what does Neutron enable and open up market-wise for Rocket Lab? You know, it's really two things. So, you know, there is a slightly unintended monopoly

within medium class launch right now. So there are really no other viable alternatives. So Neutron looks to you know squarely kind of address that and then for our own purposes as well I mean everybody you know knows Rocketland very well as a launch provider but two-thirds of our business is in fact building spacecraft. So what we're trying to build as a company is really this end-to-end space company where customers can come to us. We can very easily build their spacecraft. We can launch it for them and we can even operate it for them.

So Neutron is kind of the final leg of the stool that enables us to build that end-to-end company. And so just to circle back on NSL, you know we keep talking about this idea of acquisition reform at the Pentagon. I feel like the first place they need to start is all the acronyms, but maybe that's just me. Looking at NSSL specifically, one successful launch and then you will be certified to start bidding on some of these or competing for some of these launches within this program? Correct. And so when could we see that after Neutron flies later this year, when do we see some of those awards start to go out? Yeah, so that the task orders will be coming out sort of annually.

So, you know, there could be some task orders this year and next, but over that, you know, that period of performance of the next five years, you'll see those task orders, those task orders drop and, you know, all of us compete against. Final question for you. The milestones we need to be watching in addition to the Neutron first flight this year. In addition to Neutron, well I mean the giant sucking sound of all time resources and money in rocket lab is Neutron right now. So that's really the thing that we're focused on but outside

Neutron, you know, we have some spacecraft that we had completed for NASA that are distant from Mars so hopefully they get launched this year. Obviously, we're a prime contractor for SDA contract for National Security Spacecraft Mission, so we have old constellation on the build there, as we do for NDA and Global Star. So you'll see a lot of spacecraft leaving the factory. And Electron so far this year from a launch perspective is on a tear, so we've launched five times this year to date, this quarter alone, which puts us in the second most frequently launched rocket

in the world right now, just behind their friends at SpaceX. So it's all go at Rocket Lab this year, that's for sure. Well, Peter Beck of Rocket Lab, appreciate the time. Thank you. Thanks, Morgan. That does it for this episode of Manifest Space. Make sure you never miss a launch by following us wherever you get your podcasts and by watching our coverage on Closing Bell Overtime.

I'm Morgan Brennan.