WASHINGTON -- ABL Space Systems, a six-year-old launch startup, announced its exit from the commercial launch market to concentrate on missile defense programs for the Pentagon. This decision follows a series of setbacks and challenges in competing against industry leaders like SpaceX and Rocket Lab.
Dan Piemont, co-founder and president of ABL, stated on social media on November 14, "We are stepping away from the commercial launch market and focusing our efforts on missile defense." He attributed the decision to declining opportunities in the launch sector and ongoing geopolitical tensions.
Headquartered in El Segundo, California, ABL plans to adapt its RS1 rocket, initially designed for small satellite launches, for military applications. The company aims to present its launch technology as a cost-effective solution for missile defense, potentially serving as target vehicles for weapons testing.
The RS1's modular design, which allows packaging in standard shipping containers for rapid deployment, enhances its appeal for military use, according to Piemont. This strategic shift may position ABL in direct competition with established defense contractors in the missile defense arena, offering more affordable alternatives to the Pentagon as the U.S. military intensifies its missile-defense initiatives.
Piemont indicated that further details on ABL's roadmap and progress in missile defense will be shared soon. The Pentagon is anticipated to boost development and testing of missile interceptors, a sector that expanded during Donald Trump's first term and is expected to receive increased investment amid rising tensions with nations such as China, North Korea, and Iran.
ABL's withdrawal highlights the challenges faced by small launch providers. Despite raising over $500 million in venture funding and securing contracts with major clients like Amazon's Project Kuiper and Lockheed Martin, ABL struggled to deliver reliable launch services.
The RS1 rocket experienced two significant failures: its inaugural flight in January 2023 ended shortly after liftoff due to a fire, and a static fire test in July 2024 resulted in the rocket's destruction. These incidents, coupled with cost-cutting measures including layoffs, made it increasingly difficult for ABL to sustain its position in the commercial sector.
The small-satellite launch market has seen other failures as well, including Virgin Orbit's bankruptcy last year and Astra's ongoing technical and financial challenges. Analysts highlight that new entrants encounter significant obstacles, including high development costs and competition from firms offering frequent and reliable launches at lower prices.