SpaceX Secures $2 Billion Pentagon Contract for Missile Tracking System

SpaceX has been awarded a $2 billion contract by the War Department to develop a satellite system aimed at tracking missiles and aircraft, according to sources familiar with the matter. The funding was included in a spending bill signed by President Donald Trump in July, though the Pentagon had not officially announced a specific contractor until now.

Under the program, satellites would form an “air-moving target indicator” network, with the potential deployment of up to 600 satellites in low-Earth orbit, as reported by sources. SpaceX is also expected to lead two additional classified satellite systems: one for secure military communications, known as MilNet, and another for ground vehicle tracking.

The move highlights SpaceX’s expanding role in U.S. national-security space programs and the Pentagon’s growing reliance on commercial space providers. Insiders note that SpaceX’s ability to rapidly manufacture and launch satellites is a key advantage amid efforts to accelerate defense timelines. While details of the missile-defense network—codenamed Golden Dome—are undisclosed, officials describe it as a complex constellation capable of intercepting threats before they reach U.S. shores.

The contract has raised concerns among some lawmakers about “vendor lock,” given SpaceX’s dominance in satellite launches and its increasing involvement in military orbital systems. Sen. Rick Scott, R-Fla., warned the Pentagon must ensure competition to avoid over-reliance on a single provider.

SpaceX’s satellite business already supports the Starlink network of over 10,000 satellites and other defense-oriented projects, giving it an edge over traditional contractors. The broader Golden Dome initiative is projected to cost hundreds of billions of dollars over time, with the initial contract valued at approximately $2 billion. Industry analysts suggest the deal marks a shift in how the Pentagon sources space-based defense capabilities, potentially paving the way for more commercial-space partnerships.