Space & Satellites
Space Nuclear Power Faces Logistical and Economic Barriers, DRACO Canceled
Experts say space nuclear power challenges are logistical and economic, not technical. DRACO canceled; focus shifts to nuclear reactors in space and on the Moon.
This article summarizes reporting by Aerospace America.
For decades, the aerospace industry has recognized the immense potential of space nuclear power. Despite possessing the foundational technical knowledge since the 1960s, modern spacecraft continue to rely predominantly on chemical propulsion and solar arrays. A recent workshop at the May 2026 AIAA ASCEND event in Washington, D.C., sought to unpack this enduring paradox.
According to reporting by Aerospace America, a panel of aerospace and policy experts concluded that the primary barriers to deploying nuclear reactors in space are no longer technical. Instead, the industry is grappling with logistical, economic, and systemic hurdles that have repeatedly stalled progress.
The recent cancellation of the highly publicized Demonstration Rocket for Agile Cislunar Operations (DRACO) program in mid-2025 serves as a stark, real-world validation of these expert assessments, demonstrating how shifting economic landscapes can ground even the most ambitious nuclear initiatives.
The Illusion of Technical Barriers
During the ASCEND workshop, hosted by Brian Weeden of The Aerospace Corporation, panelists emphasized the extensive capital and time already invested in space nuclear research. Bhavya Lal, a professor at the RAND School of Public Policy, highlighted that the United States has spent 60 years and over $20 billion proving that the technology itself is viable.
“The technology has never been the bottleneck. What has failed each time is the system around the reactor,” Lal stated, according to the workshop coverage.
Lal further explained that these systemic failures include shifting mission scopes, a lack of political continuity, and unstable leadership architectures that prevent long-term projects from reaching the launch pad.
Stagnation Since the Space Race
The historical context of space nuclear power underscores the panel’s frustrations. During the Cold War, the U.S. heavily researched and successfully ground-tested nuclear thermal rockets through initiatives like the NERVA program. However, as reported by Aerospace America, these programs were ultimately scrapped due to changing political administrations and budget cuts following the Apollo era.
Tabitha Dodson, a program manager at the DARPA Defense Sciences Office, noted the resulting stagnation in the field during her panel remarks.
“The United States hasn’t really evolved our nuclear space technology since the fifties or sixties,” Dodson remarked at the event.
Dodson added that current research priorities have had to pivot toward radioisotope power systems and direct-energy power conversion systems to maintain momentum in a risk-averse funding environment.
Economic Realities and the DRACO Cancellation
The intersection of aerospace engineering and economic viability was brought into sharp focus with the recent fate of the DRACO program. Initiated in 2020 as a joint effort between DARPA, NASA, Lockheed Martin, and BWX Technologies, DRACO aimed to test a nuclear thermal rocket in orbit by 2027. Nuclear thermal propulsion was projected to be two to three times more efficient than chemical propulsion, potentially halving the travel time to Mars.
The Impact of Commercial Launch Costs
In June 2025, DARPA officially canceled the DRACO program. According to public statements from DARPA deputy director Rob McHenry, the decision was driven entirely by economics rather than technical failure.
The rapid decrease in commercial launch costs, largely propelled by the heavy-lift capabilities of companies like SpaceX, fundamentally altered the financial equation. The massive research and development costs required to perfect nuclear thermal propulsion could no longer be justified by a positive return on investment when chemical launches had become so inexpensive.
Current Mandates and the Path Forward
Despite the setbacks in nuclear propulsion, the push for nuclear power generation in space remains robust. Current executive mandates have established ambitious timelines, aiming for a functional nuclear reactor in space by 2028 and a working reactor on the lunar surface by 2030. These systems are considered critical for supporting long-term lunar habitats and deep-space exploration missions.
Balancing Ambition and Safety
Aaron Miles, Coordinator for Strategic Capabilities at the White House Office of Science and Technology Policy, discussed these targets at the ASCEND workshop. He emphasized the administration’s focus on setting goals that push the industry forward without ignoring logistical realities.
“Lunar surface reactor development efforts and in-space reactor efforts can benefit each other,” Miles noted regarding the dual mandates.
To meet these goals while navigating strict regulatory and safety hurdles, modern programs are utilizing High-Assay Low-Enriched Uranium (HALEU). Furthermore, contemporary reactor designs ensure that fission is only initiated once the system is safely in orbit, mitigating the historical public fears and international treaty complications associated with launching nuclear material.
AirPro News analysis
We observe that the pivot from nuclear propulsion (like the canceled DRACO program) to stationary nuclear surface power reflects a pragmatic maturation of the aerospace sector. While reusable chemical rockets have decisively won the current launch economics battle, sustained deep-space habitats and lunar bases will undeniably require the continuous, high-density energy that only nuclear reactors can provide. The looming 2028 and 2030 mandates will serve as a critical test of whether the U.S. government and its commercial partners can finally overcome the systemic inertia and political discontinuity described by the ASCEND panelists.
Frequently Asked Questions
What was the DRACO program?
The Demonstration Rocket for Agile Cislunar Operations (DRACO) was a joint U.S. government and industry program initiated in 2020 to develop and test a nuclear thermal rocket by 2027. It was canceled in June 2025 due to shifting economic priorities and the falling cost of commercial chemical rocket launches.
Why is nuclear power needed in space?
While solar panels and chemical batteries are sufficient for operations near Earth, deep-space exploration and permanent lunar or Martian habitats require reliable, high-density power sources that can operate continuously without sunlight or frequent resupply.
What is HALEU?
High-Assay Low-Enriched Uranium (HALEU) is a type of nuclear fuel that provides a balance between high energy output and safety, making it a preferred choice for modern space reactor designs to comply with international regulations and safety standards.
Sources
Photo Credit: Aerospace America
Space & Satellites
Planet Labs Germany and Isar Aerospace Sign Launch Deal
Planet Labs Germany and Isar Aerospace target a Pelican satellite launch within 12 months aboard the Spectrum rocket from Norway.
Planet Labs Germany and Isar Aerospace have signed a strategic launch agreement to send a next-generation Pelican satellite into orbit, marking the first time a German-built satellite will fly on a domestic launch vehicle. The mission will utilize Isar Aerospace’s Spectrum rocket lifting off from the company’s dedicated complex at Andøya Space in Norway.
Announced in a press release on July 2, 2026, the partnership targets a launch window within 12 months, potentially placing the mission as early as late 2026. The agreement pairs a subsidiary of Earth observation operator Planet Labs PBC with a European launch startup to demonstrate sovereign space capabilities for the German commercial space sector.
Expanding German Space Manufacturing
The Pelican satellite designated for this mission will be assembled at Planet’s upcoming manufacturing facility in Berlin. To support the expansion of its production capabilities, Planet expects to add 70 new employees to its existing Berlin workforce of approximately 150 personnel.
Isar Aerospace will manufacture the Spectrum launch vehicle at its 40,000-square-meter factory located near Munich. The launch provider plans to scale its production capacity to build 40 launch vehicles per year at the Munich site to meet commercial and government demand.
Germany has set out an ambitious space agenda. Planet and Isar Aerospace are responding to the moment and delivering a first for the country: both satellite and rocket built in Germany.
Martin Polak, Managing Director of Planet Labs Germany, stated that the joint teams aim to execute the first launch within less than 12 months of the agreement. He noted the timeline showcases an agile aerospace approach supporting national priorities across security, resilience, and civil applications.
Constellation Deployment and Launch Vehicle Status
Planet Labs PBC has been rapidly deploying its next-generation high-resolution Pelican constellation throughout the year. The company successfully launched three Pelican satellites on May 3, 2026, and announced the shipment of its Pelican-11 satellite to a launch site on June 2, 2026.
The launch agreement represents a significant commitment to Isar Aerospace. According to reporting by Aviation Week, the startup’s Spectrum launch vehicle has yet to reach orbit. The upcoming mission will serve as a critical test of the vehicle’s commercial viability.
Stella Guillen, Chief Commercial Officer of Isar Aerospace, said the collaboration underscores the growing strategic importance of the European space ecosystem. She added that the company’s integrated launch capability aims to serve a rapidly growing global demand for access to space.
AirPro News analysis
We view this agreement as a critical milestone for European sovereign space capabilities. By pairing a domestic payload with a domestic launch provider, Germany is demonstrating a closed-loop commercial space ecosystem that reduces reliance on foreign launch services. However, the aggressive 12-month timeline relies heavily on Isar Aerospace successfully debuting its Spectrum rocket, a vehicle that has not yet achieved orbit. If successful, this mission could position Isar Aerospace as a primary launch provider for European Earth observation constellations and validate Planet’s strategy of diversifying its launch portfolio.
Sources: Planet Labs / Business Wire
Photo Credit: Isar Aerospace
Space & Satellites
Firefly Aerospace Advances Esrange Launch Complex for 2028 Orbital Debut
Firefly Aerospace and SSC Space complete infrastructure at Esrange Space Center, targeting first orbital launch in 2028.
Firefly Aerospace and the Swedish Space Corporation (SSC Space) have completed initial infrastructure and secured transatlantic regulatory frameworks to advance pad construction at Launch Complex 3C at Sweden’s Esrange Space Center, targeting a first orbital launch in 2028.
Announced in a June 30, 2026, press release, the milestone establishes a foundation for dedicated orbital launch capabilities from mainland Europe. The partnership will utilize Firefly’s Alpha launch vehicle to serve European commercial customers and the Swedish Armed Forces, expanding access to space for allied nations.
Infrastructure and regulatory progress
The companies have completed several key infrastructure projects at Launch Complex 3C to support the upcoming orbital missions. The finalized facilities include a launch control center, a payload processing facility, and a launch vehicle integration building. The site also features newly installed tracking and control systems, alongside dedicated security and storage facilities.
The physical construction aligns with recent diplomatic agreements designed to facilitate international commercial space operations. In April 2026, the Swedish National Space Agency (SNSA) and the U.S. Federal Aviation Administration (FAA) signed a Memorandum of Cooperation to streamline the launch licensing process and establish a shared understanding of commercial space regulations. This agreement builds upon a broader framework, making Sweden the sixth country to sign a Technology Safeguards Agreement with the United States.
Defense applications and payload capabilities
The development at Esrange Space Center carries direct implications for European defense logistics. SSC Space recently signed an agreement valued at SEK 209 million with the Swedish Defense Materiel Administration (FMV). The contract is structured to provide the Swedish Armed Forces with dedicated satellite launch capabilities from the domestic spaceport.
Missions from Launch Complex 3C will utilize the Firefly Alpha, a two-stage launch vehicle capable of delivering a 1,000-kilogram payload to Low Earth Orbit (LEO). The deployment of an American rocket from European soil represents a specific operational strategy for the Texas-based manufacturer.
“We’re proud to partner with SSC Space and work collaboratively with U.S. and Swedish agencies to provide European customers with a dedicated orbital launch capability using our flight-proven Alpha rocket. Our ‘launch as a franchise’ model provides our nation and allies with the launch site diversification required for resilient, responsive space missions.”
The statement from Firefly Aerospace CEO Jason Kim highlights the company’s focus on global launch expansion, utilizing the Swedish site as the starting point for its international franchise model.
AirPro News analysis
We view Firefly’s “launch as a franchise” model as a strategic pivot in the commercial space sector, moving away from centralized domestic launch sites toward distributed, allied-nation launch capabilities. The SEK 209 million defense agreement underscores the growing military reliance on commercial launch providers for responsive space access. By establishing a physical and regulatory foothold at Esrange Space Center, Firefly positions the Alpha rocket to capture a significant share of the emerging European small-lift market, while simultaneously offering the U.S. and its allies redundant launch options outside of traditional North American spaceports.
Sources: Firefly Aerospace
Photo Credit: Firefly Aerospace
Space & Satellites
Rocket Lab to Acquire Iridium Communications for $8 Billion
Rocket Lab agrees to acquire Iridium Communications for ~$8B, combining launch capabilities with Iridium’s LEO satellite network.
Rocket Lab Corporation (Nasdaq: RKLB) has entered into a definitive agreement to acquire satellite operator Iridium Communications Inc. (Nasdaq: IRDM) in a cash and stock transaction valuing the company at approximately $8.0 billion. The deal, announced on June 29, 2026, transforms the launch provider into a fully vertically integrated space enterprise with an immediate foothold in global satellite connectivity.
Under the terms detailed in a joint press release, Iridium stockholders will receive $54.00 per share, consisting of $27.00 in cash and a portion of Rocket Lab common stock based on a collar band exchange ratio between $67.50 and $112.50. The Acquisitions merges Rocket Lab’s launch and spacecraft Manufacturing capabilities with Iridium’s globally harmonized L-band spectrum and established Low Earth Orbit (LEO) satellite network, which currently supports 2.55 million active subscribers worldwide.
Strategic integration and market expansion
The transaction positions Rocket Lab to capture a larger share of the space-based applications Market-Analysis, including satellite Internet of Things (IoT), Direct-to-Device (D2D) communications, and Positioning, Navigation, and Timing (PNT) services. Iridium reported $871.7 million in revenue and $495 million in Operational EBITDA for 2025, providing Rocket Lab with a highly profitable, established communications business operating at a 57 percent margin.
A primary operational synergy of the merger is the elimination of third-party launch costs for the deployment and replenishment of the Iridium NEXT constellation. Rocket Lab intends to utilize its Electron and upcoming Neutron launch vehicles to guarantee orbital access and maintain continuity of service for the network.
Sir Peter Beck, Founder and CEO of Rocket Lab, described the agreement as a defining moment for the space industry and the start of a new era of strategic growth for both companies.
“By marrying Iridium’s deep heritage, trusted infrastructure, and highly sought-after spectrum with Rocket Lab’s extensive and proven launch and manufacturing capabilities, we have the capability to unlock entirely new markets,” Beck stated. “We will go far beyond maintaining a legacy; we are going to build upon it to pioneer next-generation space applications and deliver sought-after capabilities to existing and new customers.”
Accelerating next-generation satellite services
The acquisition occurs as the space and terrestrial communications sectors increasingly converge. Rocket Lab plans to leverage the combined company’s resources to accelerate the development of Iridium’s next-generation constellation. This includes advancing D2D services targeted at United States national security and emergency response sectors, where traditional terrestrial networks may be unavailable or compromised.
Iridium CEO Matt Desch noted that critical services will increasingly depend on space-based capabilities as the industry evolves. He emphasized that success in the sector requires bringing innovations to space quickly and sustaining them efficiently over time.
“We’re excited about being able to accelerate the next generation of IoT, aviation, maritime, PNT, and national security capabilities, and pursue new innovative applications as part of Rocket Lab,” Desch said.
To fund the cash component of the transaction, Deutsche Bank and Wells Fargo have committed a $3.6 billion, 364-day senior secured bridge term loan facility. The transaction is expected to close in mid-2027, pending approval from stockholders and regulatory authorities, including the U.S. Securities and Exchange Commission (SEC).
AirPro News analysis
We view this $8.0 billion acquisition as a structural shift in the aerospace sector, moving away from the traditional separation of launch providers and satellite operators. By bringing Iridium in-house, Rocket Lab secures an anchor tenant for its Neutron launch vehicle while simultaneously capturing the high-margin recurring revenue of Iridium’s subscriber base.
The timing is particularly notable given the tightening availability of global launch capacity. Owning internal launch capabilities insulates the Iridium network from external supply chain bottlenecks and launch delays. Controlling both the manufacturing of the spacecraft and the launch vehicle also allows for deep vertical integration, potentially lowering the capital expenditure required for future constellation upgrades and D2D network deployments.
Sources: Iridium Communications Inc. / Rocket Lab Corporation
Photo Credit: Rocket Lab Corporation
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