Firefly Aerospace signs $1.3 billion engine deal with AST SpaceMobile

Firefly Aerospace announced a rocket engine supply agreement with AST SpaceMobile valued at more than $1.3 billion. Under the deal, Firefly will supply engines to support AST SpaceMobile's plans to build out its satellite constellation, which aims to provide cellular connectivity directly from space to ordinary phones. The agreement represents a significant commercial win for Firefly, a company that has been building out its launch vehicle and propulsion business, and it ties the company's manufacturing pipeline directly to one of the more ambitious satellite connectivity projects currently underway. For AST SpaceMobile, securing a dedicated engine supplier at this scale suggests the company is moving forward with a large, multi-launch buildout rather than a handful of test satellites. Deals of this size between launch suppliers and satellite operators are a useful signal of how seriously the space industry expects demand for satellite-based connectivity to grow in the coming years.

Why it matters

A billion-dollar-plus engine contract shows real financial commitment behind satellite-based phone connectivity plans.

Source: Firefly Aerospace