WASHINGTON — Mynaric, a key supplier of optical communications terminals for satellites destined for the U.S. Space Development Agency (SDA), is facing significant production challenges that could impact the agency’s plans to launch its next batch of satellites by year-end.
Optical terminals are devices installed on satellites that allow them to send and receive data to and from each other using laser beams. Headquartered in Munich, Germany, with additional operations in Los Angeles, California, Mynaric was selected as a supplier of these terminals by several satellite manufacturers, including Northrop Grumman, York Space, Rocket Lab, and Loft Federal, which are under contract to deliver dozens of spacecraft to SDA.
SDA, an organization under the U.S. Space Force, is working to deploy a large mesh network of small satellites in low Earth orbit to provide resilient and secure communication, surveillance, and missile tracking capabilities. Optical inter-satellite links are critical for SDA’s constellation, as they provide essentially fiber optic in space. High bandwidth is crucial for transmitting large volumes of data quickly and efficiently, which is essential for military operations that depend on real-time information.
Mynaric’s troubles in ramping up production could jeopardize these plans.
In an Aug. 20 announcement, Mynaric dramatically reduced its 2024 revenue forecast to 16-24 million euros from the previous 50-70 million euros, citing slower production ramp-up and higher production costs for its CONDOR Mk3 optical communications terminals due to lower-than-expected production yields and component shortages. The announcement, coupled with the resignation of its chief financial officer, led to a sharp decline in the company’s stock price.
Choke point in supply chain
In response to questions from SpaceNews, Mynaric’s CEO Mustafa Veziroglu said in a statement: “We expect the pace of deliveries to our customers supporting the SDA Proliferated Warfighter Space Architecture to increase each month throughout the remainder of this year and into next year.” However, he declined to provide specific customer delivery details, citing confidentiality agreements.
Industry sources told SpaceNews that Mynaric’s problems have caused frustration for SDA, which has been trying to deal with broader supply chain issues, and optical terminals have created another choke point in SDA’s supply chain.
Other suppliers that currently are under contract with SDA’s satellite manufacturers include Tesat-Spacecom, Skyloom, and CACI. According to these sources, Mynaric underestimated the complexity of mass manufacturing a product previously built only in small numbers, a challenge compounded by the company’s limited resources.
A spokesperson for SDA said the agency could not comment on Mynaric’s situation, but an agency source said SDA is working with its prime contractors to assess the potential impact of Mynaric’s production setbacks.
