Redwire Corporation has secured a $44 million Phase 2 contract from the U.S. Defense Advanced Research Projects Agency (DARPA) to manufacture and deliver a very-low-Earth-orbit (VLEO) satellite equipped with air-breathing electric propulsion (ABEP) technology, the company said.
The award is part of DARPA’s Otter program, which seeks to validate whether satellites can operate for more than a year in VLEO—defined as 90 km to 250 km altitude—where atmospheric drag typically forces spacecraft to deorbit quickly. ABEP systems collect trace atmospheric molecules and use electric power to generate thrust, potentially enabling sustained operations at altitudes previously considered impractical.
DARPA awarded Colorado-based Electric Propulsion Laboratory a $6.7 million contract in 2024 to supply the propulsion unit for the mission. Redwire will integrate the system onto its SabreSat platform for the demonstration flight.
The company has been expanding its VLEO portfolio. Redwire has highlighted the orbit’s potential advantages, including improved communications latency and sharper resolution for Earth-observation payloads. Demand is emerging beyond the U.S. government: in July, Redwire partnered with Los Angeles-based DeepSat to support development of a VLEO imaging constellation, and in September, the European Space Agency and Thales Alenia Space selected Redwire as prime contractor for ESA’s Skimsat mission, which will use Redwire’s Phantom spacecraft to test VLEO operations.
“VLEO represents an exciting new frontier for defense, intelligence, and communications missions. Through our work with DARPA, we are accelerating the development of cutting-edge capabilities that will define the future of this domain,” Tom Campbell, Redwire’s president of space missions, said in a statement.
