Germany’s biggest defence group, Rheinmetall, is in talks with satellite manufacturer OHB to form a bidding consortium to build a secure, military-grade low‑Earth‑orbit (LEO) communications network for the Bundeswehr. The plan is still at an early stage, but if the partnership proceeds it could compete for a share of a roughly €35 billion budget Berlin has earmarked over the coming years for military space capabilities. OHB’s shares jumped more than 30% on the announcement, reflecting market expectations that domestic suppliers will benefit from a major reorientation of German defence spending toward space.
The proposed system is often described inside German government circles as a “military Starlink”: a resilient constellation of LEO satellites, hardened terminals and a secure ground segment able to provide high‑throughput, rapidly deployable communications for forces, beginning with the NATO eastern flank. The Bundeswehr has completed technical specifications and procurement officials are preparing to issue tenders; Armin Fleischmann, the military’s space coordinator, said last week that German companies would build most of the network in the coming years. Berlin’s objective is not just capability enhancement but also reducing dependence on foreign commercial suppliers such as SpaceX.
The push is inseparable from recent battlefield experience. SpaceX’s Starlink, with more than 9,000 satellites and roughly 60% of the global LEO fleet, proved its value in Ukraine, offering resilient connectivity when terrestrial networks were degraded. SpaceX has since established a defence‑facing division, Starshield, underscoring how commercial satellite constellations can become critical military infrastructure. Germany’s decision to favour a domestic solution reflects unease about strategic reliance on a U.S. commercial provider whose priorities and export decisions do not always align with European governments.
Any Rheinmetall–OHB bid will face fierce competition. Airbus, Thales and Leonardo have signed a memorandum to explore combining their space businesses, a move that could create a single European heavyweight able to match or exceed the scale of other bidders. OHB’s chief executive, Marco Fuchs, has publicly warned that consolidation among Europe’s largest satellite manufacturers could create an anticompetitive market. OHB, which already supplies radar reconnaissance satellites to the German military, has raised its revenue and profit outlook partly on expectations of renewed military space spending.
Turning the political ambition into an operational reality will be technically and politically challenging. A true military LEO system requires not only satellites but secure crosslinks, anti‑jamming and anti‑spoofing measures, resilient ground networks, spectrum coordination and assured access to launch services. Europe currently lacks the launch cadence and commercial scale of SpaceX, so procurement will need to consider whether to rely on external launch providers, accelerate development of European launch capacity, or use a hybrid approach. The programme’s cost profile, timeline and industrial partners will be scrutinised by Berlin, Brussels and NATO allies.
The initiative is symptomatic of a broader European push for strategic autonomy in critical technologies. For Germany it is a test of whether a national procurement can foster an indigenous industrial base while preserving interoperability with NATO. If successfully executed, a German military LEO network would reduce operational dependence on U.S. commercial platforms and create a new market for Europe’s defence and space industries; if mishandled, it risks cost overruns, procurement disputes and further industry consolidation that could weaken competition.