K2 Space, a startup betting on the future of space hardware being massive, has secured a $60 million contract with the Space Force to launch its first full satellite mission, Gravitas. The contract marks a significant milestone for the company, which is building massive spacecraft under the assumption that launch costs will continue to drop with the advent of heavy-lift vehicles like SpaceX's Starship.

The Gravitas mission, set to launch no earlier than February 2026 on SpaceX's Transporter-16 rideshare mission, will carry multiple national security payloads for the Department of Defence. The satellite will operate in low Earth orbit (LEO) before raising its orbit to medium Earth orbit (MEO), a challenging orbit that requires powerful propulsion systems or a premium launch. K2 Space co-founder and CEO Karan Kunjur believes that MEO offers another level of resilience, citing the importance of a multi-orbit strategy or multi-orbit architecture.

The Space Force has been building out assets in MEO primarily for missile tracking and warning, as well as to enhance the Global Positioning System (GPS) network. K2 Space's novel satellite architecture, featuring a huge 3-meter-by-3-meter payload bay, offers a cost-effective solution, with satellites priced at less than $15 million each and lead times of less than three months. This represents a paradigm-shifting change from traditional large satellite procurement.

The Torrance, California-based startup is taking an unconventional approach by building a substantial percentage of the spacecraft components in-house, including reaction wheels, flight computers, solar arrays, and a 20-kilowatt electric propulsion system. According to Kunjur, the supply chain for these components at a cost-effective price point simply doesn't exist, prompting the company to set up its own manufacturing lines.

The challenge, Kunjur emphasized, is not only designing the satellite to meet the performance requirements of the Gravitas mission but also designing it for mass production. The company plans to build the satellite in a way that allows for seamless production, with the second and third satellites rolling off the production line shortly after the first.

In addition to the Gravitas mission, K2 Space will also fly several technology demonstrators on SpaceX's upcoming Transporter-12 mission in January, with a mission duration expected to last no more than a few months. The $60 million contract, which includes a 1:1:2 mix of government funds, Small Business Innovation Research matching funds, and private funds, represents a significant step forward for the company, with private backers contributing $30 million, nearly rivaling the startup's $50 million Series A funding.

K2 Space's innovative approach and cost-effective solutions have captured the attention of venture investors and the DoD, marking a significant shift in the space technology landscape. As the company continues to push the boundaries of what is possible in space hardware, its impact on the industry is likely to be felt for years to come.