A New Zealand-founded space company is being publicly positioned as a beneficiary of a major increase in United States military spending, after the US Secretary of Defense singled out Rocket Lab as the kind of defence partner Washington wants to reward.
US Defense Secretary, also referred to as US Secretary of War, Pete Hegseth was shown around Rocket Lab’s Long Beach, California facility by Kiwi founder Peter Beck on January 9, using the stop to deliver a blunt message to the defence industry: “invest in production and people, or risk falling behind.”
Rocket Lab was held up as an example by Hegseth as “the type of fast-moving commercial space company the Pentagon wants to back” as it resets defence contracting and prepares for a sharp increase in military spending.
In Rocket Lab CEO and founder Peter Beck’s introduction of US Defence Secretary Pete Hegseth, footage that is difficult to find online, with many clips cutting off Beck’s opening remarks, he solidified the company’s relationship with the United States and its Department of Defence, describing the visit as “super exciting”.
“I have had the privilege of showing the Secretary around of what we are all about at Rocket Lab. He is leading the change to reinvigorate the national industrial base and lead a more effective Department of War, one that goes faster and leans on commercial companies just like ours,” Beck told the audience.
He went on to thank and congratulate staff for their efforts, saying they are creating the “backbone to America’s national security and the space programme”.
The remarks mark a significantly more overt public alignment with US military objectives than Beck has previously expressed.
In earlier years, Beck stated Rocket Lab would not take military funding, a position that shifted after the company began securing defence-related contracts from 2009 onwards.
Peace and anti-militarisation groups have continued to oppose Rocket Lab’s defence ties, arguing that even research payloads contribute to military systems, prompting protests and legal challenges in Aotearoa.
Today, Beck frames the company’s close relationship with the US military as essential to national security and technological advancement.
Hegseth’s comments appeared to also position Rocket Lab as a US defence company.
“Rocket Lab represents the kind of rapid, scalable production the Pentagon wants to see more of,” Hegseth told staff during the visit, part of his “Arsenal of Freedom” tour.
The visit comes as President Donald Trump pushes a broad overhaul of Pentagon contracting rules and signals a dramatic increase in US defence spending in the coming years.
The United States has the world’s largest defence budget and is now signalling a sharp increase in military spending, with a growing focus on space, satellites and rapid-launch capability.
Congress approved about US$901 billion for defence in 2026, and the Trump administration has floated a defence budget of up to US$1.5 trillion by 2027.
Rocket Lab’s closer alignment with US defence priorities has also been reflected in its commercial performance
The company’s share price closed at a record high on the Nasdaq this week, following a run of developments that have strengthened its position in the US military space sector.
On December 19, Rocket Lab announced an US$816 million contract with the US Space Development Agency to design and manufacture 18 satellites for a missile-tracking programme.
The company’s share price jumped about 10 percent on the day of the announcement and has continued to rise, climbing roughly 280 percent over the past year.
Rocket Lab now has a market capitalisation of around US$49 billion.
While Rocket Lab is now headquartered in the United States, the company’s origins in Aotearoa and its continued operations at Māhia Peninsula have often been cited by governments as an example of New Zealand innovation succeeding on the global stage, even as the company’s defence ties deepen offshore.
Industry analysis of the company’s contract backlog indicates that more than half of Rocket Lab’s signed future work is tied to government customers.
Those government contracts are overwhelmingly linked to United States defence, intelligence and space agencies, reflecting the company’s expanding role in national security programmes.
The company has also secured several major US defence contracts in recent years, including large satellite-manufacturing deals for missile-tracking and national security systems, marking a shift from its earlier focus on small commercial launches.
During his speech, Hegseth emphasised the importance of space technology to future conflicts, saying the United States was “deadly serious” about dominating what he described as the “ultimate high ground of space.”
He linked Rocket Lab’s capabilities to recent US military operations, saying some of the technologies used to protect soldiers and guide precision strikes were enabled by companies like Rocket Lab.
The comments were welcomed by Rocket Lab staff at the Long Beach facility, with Hegseth praising the company’s speed and production focus while criticising what he described as slow-moving bureaucracy and legacy defence contractors. Peter Beck also spoke at the event.
Concerns back home
For Aotearoa, the spotlight on Rocket Lab has prompted questions about how closely a company with Kiwi roots should be aligned with foreign military priorities.
Green Party MP and Defence spokesperson Teanau Tuiono says the company’s growing role in US defence raises serious ethical and sovereignty concerns.
“Ko tāku nei, he maharahara nui nōku, he āwangawanga nui nōku. Ki te tiro tātou ki ngā kirimana, ko te nuinga e āwhina ana i ngā mahi hōia a Amerika. Kāore tērā i te pai,” Tuiono said.
He questioned whether this alignment reflects New Zealand’s long-standing values as an independent and nuclear-free nation.
“Ki te hoki tātou ki ngā nekehanga o mua, pērā i te kaupapa nuclear-free, i tū a Aotearoa ki mua i te ao hei whenua motuhake, hei whenua rangimārie. Nā, i ēnei rā, ka kite tātou e kaha ana te piri ki Amerika.”
Tuiono also raised concerns about what he described as a lack of transparency around Rocket Lab’s defence work.
“I think it’s incredibly concerning, and we should be demanding transparency. People need reminding of the genocide that has happened, and continues to happen, in Gaza. Why are satellites being launched that could participate in such horrific circumstances?”
He warned New Zealand risks being drawn deeper into US military strategy at a time when public services at home are under pressure.
“We like to say that we’re independent, but this government is being too close to Trump. In the midst of a cost-of-living crisis, with teachers, nurses, and firefighters protesting for better pay, billions are being allocated to military spending. I think this government has lost its priorities.”
Rocket Lab has previously stated that it works with a mix of commercial and government customers, and that its technology supports a wide range of missions.
Rocket Lab has been approached for comment.
