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Investing.com -- The U.S. Space Force’s Space Systems Command announced on Thursday that it has awarded contracts to Rocket Lab USA, Inc. (NASDAQ:RKLB) and Stoke Space as part of efforts to broaden its launch system portfolio for critical space operations.
Rocket Lab shares soared more than 8% in premarket trading Friday. The contract positions the company to bid for future U.S. national security launch missions.
Rocket Lab and Stoke Space will each receive $5 million to support an initial assessment of their capabilities.
These companies will now join the ranks of SpaceX, Blue Origin, and United Launch Alliance as part of the U.S. Space Force’s National Security Space Launch Phase 3 Lane 1 program, which aims to improve the nation’s space launch infrastructure by incorporating a wider range of service providers.
Rocket Lab will become eligible to compete for task orders after successfully launching its Neutron vehicle.
“The on-ramp of Rocket Lab came a bit earlier than we were expecting, which we thought would be closer to or after first launch – currently slated for 2H25,” Citi analyst Jason Gursky said in a note.
“We’d expect shares to reactive positively on Friday given the risk retirement nature of this award,” he added.
At this rate, Rocket Lab expects to have three Neutron vehicles ready by 2026 and an additional five by 2027, indicating that the U.S. Space Force could emerge as a key customer in the near to medium term.
The NSSL Phase 3 framework introduces a dual-lane system to expand provider options. Lane 1 focuses on low Earth orbit missions, allowing newer companies like Rocket Lab and Stoke Space to participate.
Lane 2, reserved for the most demanding national security missions, requires heavy-lift rockets capable of reaching nine reference orbits, though eligible companies for Lane 2 have not yet been announced.
Success in Lane 1 could position emerging providers for greater involvement in future Pentagon launch programs.