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Rocket Lab (New Mexico)
Key Facts
Rocket Lab is the parent company of SolAero Technologies Group
Project Summary
The Department of Commerce awarded Rocket Lab, the parent company of space power subsidiary provider SolAero Technologies Corp., up to $23.9 million in direct funding to create a more robust and resilient supply of space-grade solar cells that power spacecrafts and satellites. The investment will support a modernization and expansion of Rocket Lab’s solar cell facility in Albuquerque, New Mexico, to increase its production capacity by 50%.
Economic and National Security Impact
Rocket Lab is one of two companies in the United States that specializes in the production of highly efficient and radiation resistant compound semiconductors called space-grade solar cells – devices used in space to convert light to electricity. Rocket Lab’s space-grade solar cells power important U.S. space programs, such as missile awareness systems and exploratory science missions, including the James Webb Space Telescope, NASA’s Artemis lunar explorations, the Ingenuity Mars Helicopter, and the Mars Insight Lander. Rocket Lab’s technology also serves a growing commercial satellite market.
The modernization and expansion of Rocket Lab’s solar cell facility in Albuquerque would increase the company’s compound semiconductor production by 50% within the next three years – helping to meet the growing national security and commercial demand for these solar cells in the United States.
Financial and Commercial Terms
As stated in the CHIPS Notice of Funding Opportunity (NOFO) for Commercial Fabrication Facilities, CHIPS for America will disburse direct funding to the company for capital expenditures spent on the projects based on the completion of construction, technology, production, and commercial milestones. The CHIPS Program Office will track the performance of each CHIPS Incentives Award via financial and programmatic reports, in accordance with the award terms and conditions. All CHIPS funding recipients are required to adhere to restrictions pursuant to the CHIPS Act and NOFO regarding stock buybacks and national security guardrails, which limit the sharing of intellectual property. The Department and Rocket Lab have agreed that the company will not engage in stock buybacks for a period of five years, with specific exceptions.
Workforce and Community Impact
The investment is expected to create over 100 direct jobs. In New Mexico, Rocket Lab will partner with NewSpace Nexus, a 501(c)(3) organization founded to accelerate the pace of innovation in New Mexico alongside government, academic, and private stakeholders. Rocket Lab will also contribute $2 million over the next three years, allow access to their equipment, services, and personnel, and sponsor internship positions to advance the NewSpace Ignitor and Pathways to the Stars programs—two core initiatives of the NewSpace Nexus programs. NewSpace Ignitor, the community investment initiative, will be establishing co-innovation initiatives in Albuquerque, Navajo Nation, and rural southern New Mexico to provide opportunities in underserved communities, promote high-tech manufacturing and support diversity, equity, and inclusion.
Project Statistics: Rocket Lab | ||
|---|---|---|
Project Summary | Recipient | Rocket Lab |
| Location(s) | Albuquerque, New Mexico | |
| Congressional District | New Mexico's 1st Congressional District | |
| Estimated Job Creation | Over 100 direct jobs | |
Financial Summary | Program | CHIPS Program Office |
| Direct Funding Amount | Up to $23.9 million | |
| Expected Capital Expenditure | $97.5 million | |
Facility Summary | Project Type | Expansion and modernization of Rocket Lab’s existing compound semiconductor production facility |
| Project Timeline | Expected to increase the facility’s production capacity by 50% within 3 years | |
Related Links
- Biden-Harris Administration Announces CHIPS Incentives Awards with BAE Systems, Inc., and Rocket Lab to Expand Production of Chips Critical for U.S. National Security and Space Industry
- Biden-Harris Administration Announces Preliminary Terms with Rocket Lab to Expand Production of Compound Semiconductors that Power Spacecrafts and Satellites
- Fact Sheet: CHIPS Program Office Approach to Applicant Capital Allocation Policies
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