Connect with us

Space & Satellites

L3Harris Nears $500M Sale of Space Propulsion Stake to AE Industrial

L3Harris is selling a 60% stake in its space propulsion assets, including the RL-10 engine, to AE Industrial Partners for $500 million, supporting its focus on missile defense.

Published

on

This article summarizes exclusive reporting by Reuters and journalist Mike Stone.

Report: L3Harris Nears $500 Million Sale of Propulsion Stake to AE Industrial

L3Harris Technologies is reportedly in advanced negotiations to sell a controlling interest in its space propulsion portfolio to private equity firm AE Industrial Partners. According to exclusive reporting by Reuters, the defense contractor aims to divest a 60% stake in assets that include the RL-10 rocket engine, a critical component for United Launch Alliance (ULA) vehicles.

The deal, which sources told Reuters could be announced as early as January 5, 2026, values the stake at approximately $500 million. This transaction implies a total enterprise value of roughly $845 million for the propulsion unit. The move appears to be part of a broader strategy by L3Harris to reshape its portfolio toward national security priorities, specifically the Pentagon’s emerging missile defense initiatives.

Deal Structure and Financials

According to the reporting, the agreement is structured as a partial divestiture rather than a complete exit. L3Harris is expected to retain a 40% minority interest in the new entity, while AE Industrial Partners will take the controlling 60% share. Reuters notes that the proceeds from the sale, expected to exceed $500 million, will be utilized by L3Harris to pay down debt and invest in capacity for solid rocket motor production.

The transaction is anticipated to close in the second half of 2026, pending regulatory approvals. This structure allows L3Harris to maintain a financial foothold in the commercial launch sector while freeing up capital for its core defense contracts.

Strategic Pivot: The “Golden Dome” Initiative

The decision to sell these assets highlights a significant strategic pivot for L3Harris. Reuters reports that the company is realigning its resources to capitalize on the “Golden Dome” initiative, a multi-layered missile defense architecture proposed by the administration in 2025.

By shedding commercial and NASA-centric lines, L3Harris aims to position itself as a prime contractor for the high-priority national security programs required to build this shield against hypersonic and ballistic threats. The capital raised from the sale is reportedly earmarked for expanding missile manufacturing capabilities, directly supporting this shift in defense posture.

Asset Breakdown: What Stays and What Goes

The deal involves a specific segmentation of L3Harris’s propulsion capabilities, largely acquired during its purchase of Aerojet Rocketdyne in 2023.

Advertisement

The Sold Portfolio

AE Industrial Partners is set to acquire the “Propulsion Portfolio,” which includes assets vital to the commercial space supply chain:

  • RL-10 Rocket Engine: The upper-stage engine used by ULA’s Vulcan and Atlas V rockets.
  • In-Space Propulsion: Systems utilized for satellite maneuvering and station-keeping.
  • Launch Electronics: Avionics supporting flight operations.

Retained Assets

Conversely, Reuters indicates that L3Harris will keep the RS-25 rocket engine program. As the core stage engine for NASA’s Space Launch System (SLS), this asset is tied to long-term government contracts for the Artemis program, fitting the company’s preference for stable, government-backed revenue streams.

AE Industrial’s Vertical Integration Strategy

For AE Industrial Partners, this acquisition represents a major step toward vertical integration in the space sector. The firm already holds a significant portfolio of space companies, including launch provider Firefly Aerospace and infrastructure firm Redwire.

Acquiring the RL-10 engine provides AE Industrial with a “crown jewel” component that powers competitor rockets, effectively securing a revenue stream from the broader launch market while bolstering its internal capabilities. Reuters suggests this move consolidates critical launch capabilities under one private equity roof, potentially creating a new “super-integrator” to rival traditional prime contractors.

AirPro News Analysis

The reported sale underscores a growing trend where private equity firms are stepping in to manage legacy space hardware that traditional defense primes no longer view as core to their growth strategies. For L3Harris, the logic is clear: the margins and growth potential in the “Golden Dome” missile defense architecture likely outweigh the steady but slower-growing commercial propulsion market.

However, the transfer of the RL-10 engine, a single point of failure for U.S. national security launch, to a private equity-backed entity will likely draw scrutiny. Industry observers will be watching closely to see if AE Industrial prioritizes production stability and R&D investment for this workhorse engine, or if financial engineering takes precedence. If successful, AE Industrial could effectively control a significant portion of the Western launch supply chain, supplying engines to the very companies its other portfolio assets compete against.

Sources

Sources: Reuters

Photo Credit: Daderot

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Space & Satellites

SpaceX Lowers Starlink Satellites for Safer Orbital Operations

SpaceX plans to lower 4,400 Starlink satellites to 480 km orbit to reduce debris and improve space safety throughout 2026.

Published

on

This article summarizes reporting by Ars Technica.

SpaceX Initiates Major Reconfiguration of Starlink Constellation for Space Safety

In a significant operational shift aimed at long-term orbital sustainability, SpaceX has announced plans to lower the altitude of approximately 4,400 Starlink satellites. According to reporting by Ars Technica, the company will transition these satellites from their current orbit of roughly 550 kilometers down to approximately 480 kilometers throughout 2026. The move is designed to enhance space safety and reduce the risk of long-term orbital debris.

The reconfiguration affects the entire first-generation shell of the constellation and potentially early second-generation units. SpaceX officials have stated that this maneuver is being “tightly coordinated” with the Federal Communications Commission (FCC) and U.S. Space Command to ensure traffic management remains stable during the transition.

The Physics of Space Safety

The primary driver behind this decision is the interaction between solar cycles and atmospheric density. As explained by Michael Nicolls, VP of Starlink Engineering, the sun follows an 11-year cycle that directly impacts the Earth’s upper atmosphere. We are currently approaching a “solar minimum,” expected around 2030, during which the atmosphere cools and contracts.

In a statement cited by Ars Technica, Nicolls noted that during a solar minimum, the atmosphere at 550 km becomes significantly thinner, reducing the drag on satellites. Consequently, a defunct satellite at that altitude could remain in orbit for more than four years before naturally burning up. By lowering the fleet to 480 km, SpaceX ensures the satellites operate in a denser atmospheric layer.

“At 480 km, the atmosphere is denser… a failed satellite… would decay in just a few months.”

Summary of remarks by Michael Nicolls via Ars Technica

This “self-cleaning” characteristic is critical for preventing the accumulation of space junk. If a satellite fails at the new lower altitude, atmospheric drag will force it to deorbit and burn up much faster, regardless of the solar cycle.

Mitigating Collision Risks and Debris

Beyond the solar cycle, the move addresses immediate congestion issues in Low Earth Orbit (LEO). The 500–600 km orbital shell has become the most crowded region in LEO, hosting thousands of active satellites and debris fragments. By shifting operations to 480 km, SpaceX aims to place its fleet in a less populated region.

Advertisement

Response to Recent Anomalies

The decision also follows a specific technical incident. According to the provided reports, a Starlink satellite experienced an anomaly in December 2025, venting propellant and creating a field of trackable debris. Operating at a lower altitude serves as a mitigation strategy for such events; should similar failures occur in the future, the resulting debris would clear from orbit rapidly rather than posing a threat for years.

Operational Trade-offs and Benefits

Moving the constellation requires a careful balance of operational parameters. Flying at a lower altitude increases atmospheric drag, which demands more fuel for “station-keeping” to maintain orbit. However, reports indicate that SpaceX is confident its ion thrusters possess sufficient propellant to manage this increased load without significantly reducing the satellites’ lifespan.

There are also potential benefits to service quality and astronomy:

  • Latency: The reduced distance between the satellites and ground stations could offer a slight improvement in latency, estimated at around 1 millisecond.
  • Astronomy: Satellites at lower altitudes enter the Earth’s shadow sooner after sunset. This reduces the time they reflect sunlight, potentially mitigating light pollution that interferes with astronomical observations.

AirPro News Analysis

This reconfiguration represents a proactive step in “responsible stewardship” that may set a new standard for mega-constellation operators. By voluntarily accepting the “fuel penalty” of a lower, drag-heavy orbit, SpaceX is prioritizing safety over maximum operational lifespan. This move could pressure competitors, such as Amazon’s Project Kuiper or China’s Guowang, to adopt similar “self-cleaning” orbital architectures.

Furthermore, this adjustment appears distinct from SpaceX’s future plans for “Very Low Earth Orbit” (VLEO) satellites, which are intended to operate even lower at 300–350 km. The shift to 480 km effectively creates a bridge between traditional LEO operations and the ultra-low orbits targeted for future direct-to-cell connectivity.

Sources

Photo Credit: SpaceX

Continue Reading

Space & Satellites

LIG Nex1 Plans Rebrand to LIG Defence & Aerospace with Space Focus

LIG Nex1 is considering rebranding to emphasize its expansion into aerospace and satellite sectors, supported by a major geostationary satellite contract.

Published

on

This article summarizes reporting by Chosun Biz.

LIG Nex1 Eyes Rebrand to “LIG Defence & Aerospace” Amid Strategic Space Push

South Korean defense major LIG Nex1 is reportedly considering a significant corporate rebranding to “LIG Defence & Aerospace” as it pivots toward the satellite and space sectors. According to reporting by Chosun Biz, the potential name change is timed to coincide with the company’s 50th anniversary in 2026 and reflects a broader strategy to shed its image as solely a guided-weapon manufacturer.

The move comes as the company secures major victories in the “New Space” economy, including a landmark contract for South Korea’s first privately-led geostationary satellite project. By explicitly incorporating “Aerospace” into its identity, LIG Nex1 aims to align itself with global competitors and signal its expanded capabilities in surveillance and reconnaissance.

Rebranding for a New Era

According to the report from Chosun Biz, the company is currently reviewing the name change to “LIG Defence & Aerospace” (tentative). While the decision is not yet final, preparations appear to be well underway. The outlet notes that LIG Nex1 filed for trademark registration in May 2025 and registered the internet domain ligdna.com in September 2025.

The rebranding process, if approved, would require clearance from the Ministry of Trade, Industry and Energy (MOTIE) followed by a shareholder vote, which is projected to take place around March 2026. This timeline aligns with the company’s golden jubilee, marking a symbolic transition from its origins as Goldstar Precision (founded in 1976) to a modern aerospace entity.

Strategic Motivation

Industry analysts cited in the report suggest that the name change is a strategic necessity. Historically known as a “missile house” due to its dominance in precision-guided weapons like the Cheongung-II (M-SAM II), LIG Nex1 is seeking to diversify. The inclusion of “Aerospace” is intended to attract global partnerships and better position the company within the government’s “K-Space” initiative, which aims to foster a self-reliant domestic space ecosystem.

Expanding into the Space Sector

The rebranding initiative follows a series of tangible achievements in the aerospace domain throughout 2025. LIG Nex1 has moved aggressively to secure its footing as a prime contractor for satellite systems, challenging established players like Korea Aerospace Industries (KAI).

The Cheollian Satellite No. 5 Contract

A pivotal moment for the company occurred in May 2025, when it signed the agreement to develop the Cheollian Satellite No. 5 (GEO-KOMPSAT-5). Valued at approximately 320 billion KRW, this project represents South Korea’s first privately-led geostationary satellite development, a shift from previous government-led efforts by the Korea Aerospace Research Institute (KARI).

Advertisement

Under this contract, LIG Nex1 is responsible for the satellite system, bus, and payload. The satellite is designed for weather and space weather observation from an altitude of 36,000 kilometers. The selection process was highly competitive; Chosun Biz notes that the decision sparked a dispute with competitor KAI, which filed an objection regarding the evaluation in April 2025. However, the government proceeded with LIG Nex1, solidifying the company’s new status in the sector.

Infrastructure Investment

To support these ambitions, LIG Nex1 has invested heavily in physical infrastructure. In October 2025, the company completed a new Satellite & Laser System Assembly Building in Daejeon. The facility, built with an investment of 63.1 billion KRW, provides the capabilities necessary to assemble and test high-resolution Synthetic Aperture Radar (SAR) satellites and laser weaponry.

AirPro News Analysis

From Interceptors to Integrators

The potential rebranding of LIG Nex1 signals more than just a marketing shift; it represents the convergence of missile defense and space-based surveillance. In modern warfare, the “sensor-to-shooter” loop is critical. By integrating its legacy expertise in interceptors (like the Cheongung-II) with new capabilities in satellite observation (SAR and GEO satellites), LIG Nex1 is positioning itself as a full-spectrum solution provider.

We observe that this vertical integration allows the company to offer end-to-end systems, detecting threats from space and neutralizing them from the ground. This mirrors trends seen among global defense giants like Lockheed Martin and Northrop Grumman, where space assets are inextricably linked to terrestrial defense systems.

Competitive Landscape

The domestic competition in South Korea is intensifying. As LIG Nex1 encroaches on the aerospace territory traditionally held by KAI, and as Hanwha Systems expands its Low Earth Orbit (LEO) communications capabilities, the “New Space” sector in Korea is becoming crowded. LIG Nex1’s specific focus on geostationary platforms and laser satellite communication suggests it is carving out a high-tech niche that complements, rather than strictly duplicates, the mass-production focus of its rivals.

Sources

  • Chosun Biz
  • BusinessKorea (Cheollian 5 contract details)
  • Alpha Biz (Government satellite agreements)

Photo Credit: Chosun Biz

Continue Reading

Space & Satellites

SpaceX Dragon Executes ISS Orbit Boost Enhancing Future Deorbit Plans

SpaceX’s Cargo Dragon successfully raised the ISS orbit in a key maneuver supporting future station maintenance and deorbit capabilities.

Published

on

SpaceX Dragon Successfully Boosts ISS Orbit, Paving Way for Future Deorbit Capabilities

On Monday, December 29, 2025, SpaceX’s Cargo Dragon spacecraft successfully executed a critical reboost maneuver for the International Space Station (ISS). According to an official update from NASA, the spacecraft fired its thrusters for “just over 19 minutes,” effectively raising the station’s altitude and demonstrating the growing maturity of U.S. commercial orbital maintenance capabilities.

The operation, performed by the CRS-33 mission vehicle, marks a significant step in reducing reliance on international partners for propulsion duties. Beyond immediate station maintenance, this maneuver serves as a vital data-gathering exercise for the future United States Deorbit Vehicle (USDV), the spacecraft tasked with the eventual safe disposal of the orbital laboratory around 2030.

Operational Details of the Reboost

The maneuver utilized two Draco thrusters located in the Dragon’s unpressurized trunk. Unlike standard orbital adjustments that often rely on the station’s own propulsion or visiting Russian spacecraft, this operation leveraged the specialized capabilities of the Cargo Dragon’s “boost kit.”

Orbital Adjustments

According to mission data, the 19-minute burn resulted in a precise adjustment of the station’s orbit. The maneuver raised the ISS apogee (high point) by 1.6 miles and the perigee (low point) by 1.9 miles. Following the boost, the station is tracking in a new orbit of approximately 263.5 by 257.8 miles.

NASA confirmed that this is not the final adjustment for the CRS-33 mission; a subsequent reboost is scheduled for mid-January 2026, shortly before the spacecraft undocks to return to Earth.

Technical Advantages: The “Boost Kit”

The CRS-33 Dragon is equipped with a specialized “boost kit” housed in the aft trunk section. This hardware provides distinct operational benefits compared to other commercial vehicles like Northrop Grumman’s Cygnus.

The primary advantage lies in the orientation of the thrusters. Because the Dragon’s boost thrusters are aligned with the velocity vector, the ISS does not need to change its attitude to receive the boost. In contrast, operations involving the Cygnus spacecraft typically require the massive station to pitch down approximately 90 degrees to align the engine with the flight path, a complex maneuver that can interrupt scientific experiments and communications.

“On Monday, SpaceX’s Dragon fired its thrusters, located in the spacecraft’s trunk, for just over 19 minutes, boosting the International Space Station’s orbit.”

, Mark Garcia, NASA Blog

Advertisement

The boost kit operates independently of the capsule’s primary return propulsion, ensuring that the spacecraft retains full fuel reserves for its eventual re-entry and splashdown. The system includes extra propellant tanks containing Hydrazine and Nitrogen Tetroxide, capable of delivering significant delta-v to the station.

Strategic Context: Preparing for the End of the ISS

While the immediate goal of the December 29 operation was orbital maintenance, the broader objective is the validation of technology required for the station’s end-of-life phase. NASA has selected SpaceX to construct the United States Deorbit Vehicle (USDV), a modified Dragon spacecraft designed to guide the ISS into a controlled destructive re-entry over the ocean.

The current reboosts provide essential data on how the station’s structure responds to thrust applied through a Dragon docking port. The future USDV is expected to feature a trunk double the length of the standard version, six times the propellant capacity, and approximately 46 Draco engines to ensure sufficient power for the final descent.

AirPro News Analysis

The successful execution of the CRS-33 reboost underscores a critical shift in orbital logistics. Historically, the ISS program has relied heavily on Russian Progress cargo ships and the Zvezda service module for propulsion and attitude control. With the geopolitical landscape shifting and the station’s operational timeline extending beyond Russia’s current commitments, establishing a robust, independent U.S. reboost capability is an operational necessity.

By validating the Dragon’s ability to boost the station without disruptive reorientation maneuvers, NASA and SpaceX are effectively securing the station’s operational autonomy for its remaining years. Furthermore, these tests reduce the technical risk associated with the eventual deorbit mission, ensuring that when the time comes to retire the ISS, the hardware and modeling will be proven and ready.

Sources

Photo Credit: NASA

Continue Reading
Advertisement

Follow Us

newsletter

Latest

Categories

Tags

Popular News