German motion-technology group Schaeffler AG (XE: SHA0) and NYSE-listed satellite operator Spire Global (NYSE: SPIR) on May 27 signed a memorandum of understanding to jointly develop space hardware subsystems, satellite platforms and advanced radiofrequency and environmental sensing capabilities — an alliance aimed at building a sovereign European space-industrial base.
What's in the deal
The companies said the initial focus will be on securing and scaling supply chains for critical spacecraft subsystems. In parallel, they will evaluate a path toward industrialized satellite bus platforms for sovereign constellation programs. Schaeffler will lead precision manufacturing scale-up, while Spire will contribute platform architecture, flight software and operational know-how. The companies plan to industrialize satellites in Germany, flight-prove them in orbit and deploy them at scale for defense, weather, civil security and critical-infrastructure missions.
Why now
Spire has designed, built and launched more than 240 satellites across over 40 launch campaigns since 2013 and currently has capacity for 300 to 400 satellites per year across U.S. and European facilities. The new alliance builds on Spire's Munich manufacturing site, opened in May 2025, which gives the company a foothold to win German and European defense and government contracts.
Schaeffler, a 110,000-employee family-owned manufacturer, has flagged Space and Defense as strategic growth fields under its Strategic Ambition 2035 framework. The company is pitching its precision bearings, motors and power-electronics know-how — honed across automotive and industrial supply chains — as exactly what Europe needs to scale flight-qualified satellite hardware.
Executive view
"This is a meaningful step toward a reliable, industrialized pathway for critical dual-use missions and a more self-reliant European space-industrial base," said Theresa Condor, CEO of Spire Global. Schaeffler CEO Klaus Rosenfeld added that the group's "precision manufacturing, motor and bearing heritage, and power electronics capability are precisely what the growing European satellite industry requires in industrialized, flight-qualified hardware."
Part of a wider sovereign-tech push
The MoU lands as European governments accelerate spending on satellite-based defense and Earth observation, and as global rivals expand on-orbit servicing and satellite-manufacturing capacity. NASA is also scaling lunar infrastructure with $1B in Moon base contracts ahead of Artemis 3, while ESA recently received the MANUS lunar robotic arm prototype from Redwire and DARPA is preparing its RSGS robotic satellite-servicing mission for 2026.
For Spire, the Schaeffler tie-up deepens its German manufacturing presence and access to sovereign defense customers across the continent. For Schaeffler, it opens a new growth lane beyond automotive and industrial drives. The companies did not disclose financial terms or specific program targets.
Reporting based on coverage from Spire Global, Schaeffler AG and Business Wire.