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SpaceX developing spy satellite network under $1.8B US intelligence agency contract: report

SpaceX is developing a network of hundreds of spy satellites under a classified contract between billionaire Elon Musk’s space company and a U.S. intelligence agency, according to a report. 

The network is being built through SpaceX’s Starshield business unit as part of a $1.8 billion contract the company inked in 2021 with the National Reconnaissance Office, which manages spy satellites, five sources told Reuters.

The new spy system, which would feature hundreds of satellites with Earth-imaging capabilities that can operate as a swarm in low orbits, would provide the United States the most persistent, pervasive and rapid coverage of activities on Earth. 

SpaceX CEO Elon Musk looking to his right while clasping his hands in front of his chest.
The spy program being developed by billionaire Elon Musk’s company would provide the United States the most persistent, pervasive and rapid coverage of activities on Earth. REUTERS

If successful, the program would boost the US government and military’s ability to quickly spot targets practically anywhere in the world.

“No one can hide,” one source said of the system’s potential capability when discussing its reach.

The nearly $2 billion contract reflects a growing trust between SpaceX and the national security agencies following tension in recent years between Musk and the Biden administration.

Frustrations have included Musk’s control of Starlink in Ukraine, which the country’s military relies on for secure communications during its ongoing war with Russia.

It is unclear when the Starshield satellites will come online or what other companies have contracts as part of the program. 

Roughly a dozen Starshield prototypes have been launched into space since 2020, in addition to other satellites via SpaceX’s Falcon 9 rockets, three sources said.

SpaceX already has contracts with the Pentagon for using its Falcon 9 rockets to send military payloads into space. 

US billionaire businessman and pilot Jared Isaacman flies in formation aboard a fighter jet over the SpaceX sign
The Pentagon has relied on SpaceX for its Falcon 9 rockets to send military payloads into space.  AFP via Getty Images

The Starshield prototype launch was part of a separate, roughly $200 million contract with SpaceX, which helped the company to secure the $1.8 billion payday, one source said. 

The National Reconnaissance Office acknowledged it is working to develop a satellite system and is partnering with other government agencies, companies, research institutions and nations, but declined to discuss SpaceX’s involvement.

“The National Reconnaissance Office is developing the most capable, diverse, and resilient space-based intelligence, surveillance, and reconnaissance system the world has ever seen,” a spokesperson said.

The Starshield network is a distinct operation from Space X’s growing Starlink network, which boasts roughly 5,500 satellites and provides internet to consumers, companies and government agencies around the world.

Starsheild’s development comes as competition between the United States and its rivals intensifies over military power dominance in space, in part by switching from expensive high-orbit spacecraft toward low-orbiting networks to provide faster and round-the-clock imaging of Earth. 

China is also looking to develop its own satellite constellations, and the Pentagon has warned of Russian space weapons that could disable entire satellite networks.

With Post wires