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Elon Musk’s SpaceX (SPACE) is building a network of hundreds of spy satellites under a classified contract with a U.S. government agency that deals with space-based intelligence, Reuters reported on Saturday, citing five sources familiar with the program.
According to the sources, the network is being built by SpaceX’s (SPACE) Starshield unit under a $1.8B contract signed in 2021 with the U.S. National Reconnaissance Office (NRO), an agency that operates space-based surveillance and reconnaissance systems to collect and deliver intelligence.
SpaceX (SPACE) and the NRO did not immediately respond to requests for comment from Seeking Alpha.
The Wall Street Journal back in February had reported that SpaceX (SPACE) had entered a $1.8B contract with an unknown government agency without giving any details of the program.
Saturday’s Reuters report disclosed for the first time that the government agency was the NRO and that the contract was for a powerful new spy system with hundreds of satellites bearing Earth-imaging capabilities that can operate as a swarm in low orbits.
The planned network of spy satellites shows the extent to which SpaceX (SPACE) is getting involved in U.S. intelligence and military projects. It also demonstrates the Pentagon’s willingness to invest into low-Earth orbiting satellite systems.