Rocket Lab Just Unveiled a Game-Changing Technology Worth Watching

Rocket Lab just secured a big U.S. Space Force contract to deploy its “Flatellites”.

These stackable satellites could support its evolution into an end-to-end space company.

Rocket Lab (NASDAQ: RKLB) , a developer of reusable orbital rockets, recently secured at $397 million contract from the U.S. Space Force to develop, launch, and operate multiple "Flatellites" for its Space-Based Airborne Moving Target Indicator (SB-AMTI) program. Let's see what this new technology does, and why it could generate long-term tailwinds for Rocket Lab's business.

Flatellites are satellites that are flatter and more stackable than their conventional counterparts. Their slimmer profile enables Rocket Lab to deploy more of them per launch, and they can be seamlessly integrated into the company's upcoming Neutron rocket.

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Rocket Lab introduced Flatellites last February, but it hasn't produced any of those next-gen satellites yet. But it's been acquiring smaller companies and developing its own components to support the expansion of that vertically integrated satellite manufacturing business.

Rocket Lab believes that approach will enable it to produce high volumes of Flatellites "without compromising performance or reliability". It also expects more of its customers to use Flatellites to rapidly deploy their own low Earth orbit (LEO) satellite constellations. According to Grand View Research, the LEO market could expand at a 14% CAGR from 2025 to 2033 as more private space companies and national space agencies launch those satellites to upgrade their communication and surveillance capabilities.

Rocket Lab currently generates most of its revenue from its Electron orbital rocket, which it has successfully launched 92 times to deploy more than 263 satellites. The Electron carries much smaller payloads than SpaceX 's (NASDAQ: SPCX) Falcon rockets, but the Neutron -- which is expected to arrive by the end of 2026 -- will carry much larger payloads.