EU awards at least €1.8 bn contract to Belgian start‑up Aerospacelab for Iris2 satellites

The European Commission has granted a minimum €1.8 bn contract to Aerospacelab to build up to 264 of the 348 Iris2 satellites, the first large EU space project to hand a key component to a start‑up.

The European Commission has awarded a minimum €1.8 bn contract to Belgian start‑up Aerospacelab to manufacture up to 264 of the 348 satellites for the Iris2 programme.

Handelsblatt reported that Aerospacelab will be responsible for building the majority of the constellation, specifically up to 264 units. The total Iris2 programme is budgeted at €15.6 bn, almost 50 % higher than the estimate made two years ago.

According to the same source, Iris2 becomes the first large European space project in which a key component – the satellite hardware – is entrusted to a start‑up rather than the traditional aerospace giants. The move signals a shift in EU procurement towards greater competition and diversification of the supply chain.

The award could open further opportunities for smaller firms in the European space sector, as the EU demonstrates willingness to allocate substantial budgets to non‑traditional suppliers. Competitors may need to reassess pricing and innovation strategies to retain a share of future contracts.