Lockheed Martin has invested $100 million in Terran Orbital (NYSE: LLAP) to expand the company’s manufacturing operations. Terran’s stock is up 7 percent to $2.74 today.
“Terran Orbital intends to use the funds to acquire additional satellite assembly space, increase module production, and satisfy working capital needs while expanding advanced manufacturing abilities,” the company said in a press release. “Terran Orbital’s advanced manufacturing capabilities, which were originally planned for expansion on Florida’s Space Coast in partnership with Space Florida, have been accelerated and will now be based in Irvine, California. Terran Orbital has added over 140,000 square feet in Irvine alone in the past 12 months.”
Terran Orbital plans to offer additional products and services as follows:
- payloads including synthetic aperture radar (SAR), electro-optical, hyperspectral, infrared, and secure communication,
- high-reliability satellite subassemblies and component offerings, including, but not limited, to star trackers, flight computers, reaction wheels, battery solutions, and guidance, navigation and control solutions,
- mission operations for satellites using Terran Orbital and partner ground networks, and
- other defense-related products.
“In today’s market, customers want the industry to determine the leaders that will deliver timely, quality, and affordable solutions across a variety of missions,” said Terran Orbital Co-Founder, Chairman, and CEO Marc Bell. “This is a continued expansion of our collaboration with Lockheed Martin, and complements and accelerates the decision Terran Orbital made amid the lingering supply chain crisis to continue to vertically integrate products and components to facilitate full in-house satellite and manufacturing production. We see the opportunity to dramatically ramp up our capabilities and external product offerings, which we believe will move Terran Orbital toward profitability.”
Terran Orbital and Lockheed Martin also entered into a new strategic cooperation agreement that runs through 2035. The two companies will “share their expertise and relationships to advance emerging technology across military, commercial, and civil customers.”
Lockheed Martin’s investment was in exchange for convertible notes and warrants issued by Terran Orbital.