Japanese heavy industry manufacturer IHI has contracted with Finland’s ICEYE to acquire radar-equipped Earth observation satellites, marking Tokyo’s latest effort to strengthen domestic space-based intelligence capabilities for military and civilian applications.
The deal calls for IHI to purchase four synthetic aperture radar satellites initially, with options to expand the constellation to as many as 24 spacecraft by fiscal 2029, according to an announcement Thursday. Two of the first four satellites will be assembled and tested in Japan, with preparations already underway.
The initial satellites are scheduled to begin delivering imagery data around April 2026. Whether IHI exercises options for additional spacecraft will depend on the performance of the initial batch.
The procurement follows a memorandum of understanding signed between the companies in May at a defense exhibition near Tokyo. The agreement aims to establish domestic satellite manufacturing in Japan, combining ICEYE’s radar technology with IHI’s production capabilities.
ICEYE and Abu Dhabi’s Space42 recently completed a similar arrangement to assemble three radar satellites in the United Arab Emirates. The Finnish company operates what it describes as the world’s largest commercial radar satellite constellation and plans to exceed 100 spacecraft by 2027.
The companies did not disclose financial terms of the procurement contract.
