WASHINGTON -- California-based satellite manufacturer K2 Space has secured a $30 million contract from the U.S. Space Force to launch its first Mega Class satellite, a milestone for the startup founded just two years ago.
The deal is part of the Strategic Financing Initiative (STRATFI) program, which matches government funds with private investment to bolster cutting-edge space technologies. With contributions from the Space Force's SpaceWERX organization, the Air Force Research Laboratory, and the Pentagon's Space Test Program, the total value of the project amounts to $60 million.
The agreement was first announced in August but the details of the contract and the project were not disclosed until Dec. 19.
With its Mega Class spacecraft bus, K2 Space is seeking to disrupt the traditional relationship between satellite mass and cost, looking to offer satellite buses at a price point of about $15 million typically seen in smaller systems.
The Mega bus design includes a 3-meter by 3-meter payload deck, with the capability to stack up to 10 units in a single Falcon 9 rocket fairing or equivalent vehicle. The satellite is designed to operate in low, medium and higher Earth orbits, aiming for national security applications such as the "Resilient GPS" program.
"We've gotten a lot of feedback that our bus fills a significant gap in the current architecture," said K2 Space co-founder and CEO Karan Kunjur. "There are lots of manufacturers for the low Earth orbit satellite market but not many that can fill the demands of MEO and higher orbits."
The STRATFI contract funds the design, integration and launch of a satellite hosting multiple experimental payloads for the Defense Department's Space Test Program. Dubbed "Gravitas," the mission is set to launch in February 2026 aboard a SpaceX rideshare mission to low Earth orbit.
From there, K2's proprietary electric propulsion system will transport the satellite to a MEO altitude of approximately 12,000 miles. Kunjur said that orbit raising can be completed in under three months.
In LEO, the satellite will conduct a 12-week phase of experimentation with national security payloads. Following this phase, the spacecraft will ascend to MEO for further tests, including space weather monitoring.
The STRATFI agreement follows several smaller Small Business Innovation Research (SBIR) awards, indicating growing military interest in large, high-powered satellite bus technology, Kunjur told SpaceNews. These platforms could serve various defense applications, from space domain awareness to communications and navigation systems.
With the Gravitas mission, K2 Space is poised to be one of the first commercial players to demonstrate operational capabilities in MEO.