SpaceX Secures First Pentagon Contract for Cutting-Edge Starshield

The Pentagon has awarded Elon Musk’s SpaceX its first confirmed contract for the Starshield network it’s developing, a military-specific version of the company’s Starlink satellite internet system, according to a statement released by the defense agency on Wednesday.

A spokesperson from the Space Force confirmed that SpaceX was awarded a one-year contract worth up to $70 million for Starshield on September 1. This contract was part of a program managed by the Space Force’s commercial satellite communications office and involved 18 other companies.

“The SpaceX contract includes the provision of end-to-end services for Starshield using the Starlink constellation, user terminals, ancillary equipment, network management, and other related services,” said Space Force spokesperson Ann Stefanek in an interview with CNBC.

SpaceX has not yet responded to CNBC’s request for comment on the Starshield contract.

The company introduced Starshield as a new business line last year, and the Pentagon, which has already been a major buyer of SpaceX’s rocket launches, has shown increasing interest in its Starlink satellite internet service.

Although SpaceX has revealed limited details about the specific scope and capabilities of Starshield, it markets the service as an “end-to-end” and dedicated solution for national security, distinct from its Starlink consumer and enterprise network.

SpaceX’s contract for Starshield follows its successful bid in June to provide an undisclosed number of Starlink ground terminals to Ukraine, as part of a different Pentagon contract.

The initial phase of the Starshield contract requires SpaceX to deliver services worth $15 million by September 30, supporting 54 military “mission partners” from various branches of the Department of Defense, the spokesperson added.

Bloomberg was the first to report on the contract on Thursday.

— CNBC’s Claudia Johnson contributed to this report.