Elon Musk's SpaceX secures USD 70 million Pentagon contract for 'Starshield' network

In a significant development, the Pentagon has officially awarded SpaceX, led by Elon Musk, its maiden contract for the Starshield network. This military-specific version of SpaceX's Starlink satellite internet system holds promises for enhanced national security communication.

On September 1, SpaceX clinched a one-year contract for Starshield with a maximum value of $70 million. This comes as part of a program run by the Space Force’s commercial satellite communications office, with SpaceX standing out among 18 other companies.

"The SpaceX contract provides for Starshield end-to-end service (via the Starlink constellation), user terminals, ancillary equipment, network management, and other related services," confirmed Space Force spokesperson Ann Stefanek to US media.

Strategic focus and unique capabilities: SpaceX’s Starshield unveiled

SpaceX introduced Starshield last year as a distinct business line. While the specifics of Starshield's scope and capabilities remain closely guarded, SpaceX positions it as an "end-to-end" dedicated offering for national security, setting it apart from the Starlink consumer and enterprise network.

"SpaceX is proud to contribute to the national security landscape with Starshield, ensuring top-notch communication capabilities tailored for military needs," said an earlier statement from the company.

This recent contract follows SpaceX's triumph in June when it secured a Pentagon contract to supply an unspecified number of Starlink ground terminals for use in Ukraine. With these back-to-back wins, SpaceX further solidifies its presence in the military communication sector.

As part of the initial phase of the Starshield contract, SpaceX is tasked with providing services supporting 54 military "mission partners" across various branches of the Department of Defense. An obligation of $15 million to SpaceX by September 30 signifies the immediate priorities under this groundbreaking contract.

The revelation about the contract comes following a phase of heightened examination of SpaceX's involvement in Ukraine. The company has been supplying internet connectivity to the Ukrainian military in their efforts to counter Russian invasion. According to Walter Isaacson's latest biography of Musk, it was disclosed that Musk declined to extend Starlink coverage to Crimea, which is under Russian occupation.