Elon Musk’s SpaceX, Pentagon to Deepen Ties Despite Dispute on Starlink Funding in Ukraine


The Pentagon is set to expand its use of

Elon Musk’s

SpaceX satellite capabilities despite a recent dispute between the two sides over the funding of satellite-based internet services for an embattled Ukraine, according to government documents.

Space Exploration Technologies Corp., the formal name for the company that Mr. Musk founded more than two decades ago, is already a major Pentagon contractor, handling sensitive national-security launches on its rockets. Those ties are set to grow into satellite services where SpaceX’s Starlink division is a dominant player in key regions, the documents said.

This year, at least two Air Force commands—the one that handles European operations and the one that flies most of the Air Force’s jet fighters—justified sole-source contracts for Starlink hardware and service in part by saying Starlink has a leg up on competitors, according to a federal contracts database. Other Pentagon units have also recently said they intended to issue contracts to Starlink.

Starlink’s role in Ukraine’s efforts to defend itself from Russia’s invasion has underscored the strategic value of Mr. Musk’s satellite assets. Starlink satellites have been a critical tool for the Ukrainian military in its campaign against Russian forces, defense officials in the country have said, making Ukraine a high-stakes proving ground for the service and drawing attention from U.S. military officials.

Starlink internet service provided by Elon Musk’s SpaceX has played a crucial role in maintaining communications among Ukrainian troops. WSJ’s Ian Lovett explains how the company’s terminals are being used on the battlefield. Photo: Serhii Korovainiy

Starlink is the only business operating satellites in low-Earth orbit, or LEO, that are capable of providing internet connections in both Europe and Africa, according to procurement documents. It is thus the only LEO satellite network provider that is currently being used in Ukraine, according to a document prepared by the U.S. Air Force’s Europe and Africa command.

But paying for the use of Starlink in Ukraine has emerged as a point of contention between SpaceX and U.S. defense officials. At one point, Mr. Musk said it wasn’t reasonable for the company to fund Starlink in Ukraine indefinitely. He later said SpaceX would continue to do so, even though other companies involved in Ukraine’s defense were receiving taxpayer support.

The Pentagon and SpaceX have held discussions about funding for the company’s Starlink internet service in Ukraine, a senior military official said on Tuesday. Mr. Musk had earlier indicated in a tweet that SpaceX had withdrawn its request for funds for the service.

SpaceX, whose Falcon 9 rocket lifted off from Cape Canaveral Space Force Station in Florida in September, is already a major Pentagon contractor.



Photo:

Associated Press

The company has battled with the Defense Department before. In 2014, SpaceX sued the Pentagon over competition for Air Force launch opportunities, a matter that was later settled. Three years ago, SpaceX filed a lawsuit against the federal government, challenging how the Air Force awarded launch-systems contracts that went to competitors, according to a filing related to the dispute.

Mark Lewis,

the former chief scientist at the Air Force, said he believes the ties between the Pentagon and Starlink will grow over time, given the capabilities SpaceX has demonstrated with its satellite-internet division.

“There’s been a relatively close relationship between SpaceX and the department,” said Dr. Lewis, who now leads an emerging-technologies group at the National Defense Industrial Association. “There have been some rough patches.”

Mr. Musk is pushing to build up Starlink, which enables users with a terminal to tap into what is designed to be high-speed internet provided through a fleet of more than 3,000 satellites.

The business’s subscriber count has increased this year, executives at SpaceX have said, as the company has worked to sell the service to a growing array of customers, including owners of recreational vehicles.

SHARE YOUR THOUGHTS

Who should fund the continuing operations of Ukraine’s use of Starlink, SpaceX’s satellite-internet service? Join the conversation below.

The Defense Department’s use of Starlink is currently relatively limited, but the Pentagon is a potentially significant customer for Starlink. SpaceX’s work with the military on internet connections has focused in part on demonstrations and tests, according to contracts and Pentagon statements.

For example, a 2018 contract worth $28.7 million between the Air Force Research Laboratory and SpaceX focused on internet-connection experiments, including on aircraft, according to a statement at the time.

Hawthorne, Calif.-based SpaceX didn’t respond to requests for comment.

On Tuesday, Mr. Musk said again in a tweet that Starlink’s operations in Ukraine continued to cost the company around $20 million a month.

Air Force Brig. Gen.

Pat Ryder

said that the Defense Department and SpaceX continued to discuss various matters, and that the Pentagon hadn’t paid SpaceX for Starlink service in Ukraine.

Last week, the Pentagon said it had received a letter from the company about Starlink funding for Ukraine. European countries have also discussed providing funding for Ukraine’s use of Starlink, according to a report in Politico.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8


The Pentagon is set to expand its use of

Elon Musk’s

SpaceX satellite capabilities despite a recent dispute between the two sides over the funding of satellite-based internet services for an embattled Ukraine, according to government documents.

Space Exploration Technologies Corp., the formal name for the company that Mr. Musk founded more than two decades ago, is already a major Pentagon contractor, handling sensitive national-security launches on its rockets. Those ties are set to grow into satellite services where SpaceX’s Starlink division is a dominant player in key regions, the documents said.

This year, at least two Air Force commands—the one that handles European operations and the one that flies most of the Air Force’s jet fighters—justified sole-source contracts for Starlink hardware and service in part by saying Starlink has a leg up on competitors, according to a federal contracts database. Other Pentagon units have also recently said they intended to issue contracts to Starlink.

Starlink’s role in Ukraine’s efforts to defend itself from Russia’s invasion has underscored the strategic value of Mr. Musk’s satellite assets. Starlink satellites have been a critical tool for the Ukrainian military in its campaign against Russian forces, defense officials in the country have said, making Ukraine a high-stakes proving ground for the service and drawing attention from U.S. military officials.

Starlink internet service provided by Elon Musk’s SpaceX has played a crucial role in maintaining communications among Ukrainian troops. WSJ’s Ian Lovett explains how the company’s terminals are being used on the battlefield. Photo: Serhii Korovainiy

Starlink is the only business operating satellites in low-Earth orbit, or LEO, that are capable of providing internet connections in both Europe and Africa, according to procurement documents. It is thus the only LEO satellite network provider that is currently being used in Ukraine, according to a document prepared by the U.S. Air Force’s Europe and Africa command.

But paying for the use of Starlink in Ukraine has emerged as a point of contention between SpaceX and U.S. defense officials. At one point, Mr. Musk said it wasn’t reasonable for the company to fund Starlink in Ukraine indefinitely. He later said SpaceX would continue to do so, even though other companies involved in Ukraine’s defense were receiving taxpayer support.

The Pentagon and SpaceX have held discussions about funding for the company’s Starlink internet service in Ukraine, a senior military official said on Tuesday. Mr. Musk had earlier indicated in a tweet that SpaceX had withdrawn its request for funds for the service.

SpaceX, whose Falcon 9 rocket lifted off from Cape Canaveral Space Force Station in Florida in September, is already a major Pentagon contractor.



Photo:

Associated Press

The company has battled with the Defense Department before. In 2014, SpaceX sued the Pentagon over competition for Air Force launch opportunities, a matter that was later settled. Three years ago, SpaceX filed a lawsuit against the federal government, challenging how the Air Force awarded launch-systems contracts that went to competitors, according to a filing related to the dispute.

Mark Lewis,

the former chief scientist at the Air Force, said he believes the ties between the Pentagon and Starlink will grow over time, given the capabilities SpaceX has demonstrated with its satellite-internet division.

“There’s been a relatively close relationship between SpaceX and the department,” said Dr. Lewis, who now leads an emerging-technologies group at the National Defense Industrial Association. “There have been some rough patches.”

Mr. Musk is pushing to build up Starlink, which enables users with a terminal to tap into what is designed to be high-speed internet provided through a fleet of more than 3,000 satellites.

The business’s subscriber count has increased this year, executives at SpaceX have said, as the company has worked to sell the service to a growing array of customers, including owners of recreational vehicles.

SHARE YOUR THOUGHTS

Who should fund the continuing operations of Ukraine’s use of Starlink, SpaceX’s satellite-internet service? Join the conversation below.

The Defense Department’s use of Starlink is currently relatively limited, but the Pentagon is a potentially significant customer for Starlink. SpaceX’s work with the military on internet connections has focused in part on demonstrations and tests, according to contracts and Pentagon statements.

For example, a 2018 contract worth $28.7 million between the Air Force Research Laboratory and SpaceX focused on internet-connection experiments, including on aircraft, according to a statement at the time.

Hawthorne, Calif.-based SpaceX didn’t respond to requests for comment.

On Tuesday, Mr. Musk said again in a tweet that Starlink’s operations in Ukraine continued to cost the company around $20 million a month.

Air Force Brig. Gen.

Pat Ryder

said that the Defense Department and SpaceX continued to discuss various matters, and that the Pentagon hadn’t paid SpaceX for Starlink service in Ukraine.

Last week, the Pentagon said it had received a letter from the company about Starlink funding for Ukraine. European countries have also discussed providing funding for Ukraine’s use of Starlink, according to a report in Politico.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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