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Lockheed Martin (LMT), the U.S. defense contractor, said on Wednesday that it has entered a purchase agreement with Firefly Aerospace for up to 25 launches on its Alpha rocket by 2029.
Firefly Aerospace’s Role:
Texas-based Firefly Aerospace specializes in small and medium launch vehicles for commercial launches to orbit. According to Lockheed, its small launch vehicle, Alpha, will be used to fly Lockheed’s spacecraft and payloads into low-Earth orbit from its facilities on both the west and east coasts.
Financial Details and Strategic Benefits
The companies did not reveal the financial details of the deal. Lockheed stated that the lower-cost launch vehicles would help reduce risk for its self-funded technology demonstration missions.
Lockheed’s space division saw a profit increase in its latest quarter, benefiting from higher launch volume in United Launch Alliance (ULA), its joint venture with Boeing (B.A.).
Background on United Launch Alliance:
Boeing and Lockheed merged their rocket programs in 2006, creating ULA, which focused on space launch services. Recent media reports indicate that both companies are considering selling the jointly owned venture.
