Terran Orbital has been granted a $100 million investment from Lockheed Martin following its entry into a note and warrant purchase agreement with the defense contractor and is planning to use the funding to expand its advanced satellite product manufacturing capabilities.
The partnership aligns with a new strategic cooperation agreement that will provide Lockheed with access to Terran Orbital’s convertible notes and warrants and will be active through 2035, the satellite manufacturer said Monday.
Marc Bell, co-founder, chairman and CEO of Terran Orbital, commented on the expanded relationship between the two companies and its importance in furthering the vertical integration of Terran Orbital’s products to enable full in-house satellite manufacturing.
“We see the opportunity to dramatically ramp up our capabilities and external product offerings, which we believe will move Terran Orbital toward profitability,” he said.
With the integration of both companies’ technical prowess, the two aim to enhance developing technology in the military, commercial and civil sectors.
Target areas within this goal include mission assurance in both satellite and constellation architecture areas, providing offerings quickly to mission-critical customers and ensuring affordability by using an industrial approach.
Utilizing the new funds from the investment, Terran Orbital will advance its manufacturing capacity, moving from its planned location on Florida’s Space Coast to Irvine, California following the company’s occupation of additional 140,000 square feet of space across the area.
The location will allow for increased module production and fulfill working capital requirements as well as expanded pre-existing manufacturing capabilities.
Additionally, the company will channel the investment funds into widening its product and service selection across payloads including synthetic aperture radar and other areas, reliable satellite subassemblies and mission operations for satellites using Terran Orbital’s ground networks.
Terran Orbital will also halt the development of its own constellation and focus on offering products in line with its SAR tools to quickly supply the technology to its customers while maintaining financial performance.
Additional details regarding Terran Orbital’s future vision will be disclosed during the company’s Q3 financial results call.