BAE Systems and Rocket Lab are the two new recipients of separate contracts from the US Department of Commerce which will grant both companies the funds needed to supply the country's focus on expanding its aerospace programs. An almost $60 million contract is now being finalized by Commerce that will be split between these two companies in helping US military and space's advancements.
The goal is to expand more of the F-35 program with a new semiconductor from BAE Systems, while Rocket Lab will help in supplying components for satellites and spacecraft for the US.
BAE Systems, Rocket Lab to Get US Commerce $60M Grant
Reuters reported that Commerce is now on the verge of finalizing an almost $60 million contract for BAE Systems and Rocket Lab to receive new government subsidies for essential components of US aerospace programs.
First off, BAE Systems will receive a $35.5 million grant that will increase its production in New Hampshire by four times to create semiconductor chips that are needed for advancing F-35 fighter jets. This latest grant would allow BAE Systems to speed up its modernization timeline by twice the original track, and help the Pentagon in its upcoming purchase of 2,500 F-35 fighter plans worth $1.7 trillion.
Next, Reuters claimed that Rocket Lab's SolAero Technologies Corp. will see a $23.9 million subsidy that would boost its solar cell production by half the original time for the next three years. These solar cells are essential to offer a way to gather power from the Sun for US satellites and spacecraft previously used on Artemis, James Webb Space Telescope, and more.
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Biden Administration's Chip and Science Program
It was also revealed in the report that Commerce Secretary, Gina Raimondo, revealed that the department is now racing over time to complete 'as many agreements' under President Biden's renowned 'Chips and Science' program worth $52.7 billion. Secretary Raimondo regarded that the department is looking to accomplish this before President-elect Donald J. Trump steps into the White House by January 20.
Trump is notorious for the massive changes taking place once he steps into office, particularly with the massive US tariffs for international companies coming into the country.
BAE Systems and Rocket Lab's Work with US
It is not the first time that both companies received contracts from the US government to expand more on its various programs that will help the country in different aspects of defense, space, and more. BAE Systems previously received a $450 million agreement from NASA to create a new ocean color instrument for the National Oceanic and Atmospheric Administration.
On the other hand, Rocket Lab is a prominent company that has been working with the US government and NASA on various projects including solar energy power for spacecraft, CAPSTONE, and more. The company also supplied the US Space Force's previous missile warning satellites with solar cells to gather energy from the Sun and keep it powered on its stay in orbit.
These two contractors have been significant partners of the United States for its many projects and both are tapped yet again for advancing various programs under POTUS Biden's Chips and Science Program. The latest contract for both companies will offer an almost $60 million grant for different projects, with both tasked with significant programs to accelerate aerospace ventures in the country.
