After a dramatic fall from its high-flying days as a publicly traded rocket startup, Astra is charting a comeback with a $44 million contract from the U.S. Department of Defense to develop its next-generation launch vehicle, Rocket 4. The mobile, two-stage rocket is designed to deliver military cargo across the globe in under an hour—an ambitious goal that, if realized, could transform rapid-response logistics.
Credit: Astra Space
Astra, now operating as a private company after being delisted from Nasdaq in June 2024, is targeting the first test flight of Rocket 4 in 2026. The contract, awarded by the Defense Innovation Unit (DIU), marks a significant milestone in Astra’s pivot from early failures to a potential leader in point-to-point delivery via space.
CEO Chris Kemp said the company is preparing to demonstrate the capability to transport around 1,300 pounds of cargo using Rocket 4, leveraging mobile launch infrastructure that allows liftoffs from locations beyond traditional spaceports. The orbital test launch, likely to take place in Australia, is one of two key milestones under the DIU agreement—the other being a suborbital test focused on rapid terrestrial delivery.
“This is a multi-year effort with demonstrations planned around mid to late 2026,” a DIU spokesperson confirmed. The initiative is part of the Pentagon's broader Novel Responsive Space Delivery project, which is exploring ways to deploy critical supplies, like drones, via rockets and reentry vehicles—offering an alternative to conventional air or sea transport.
While Astra’s new path echoes efforts by competitors like ABL Space, which also sought to pioneer mobile rocket systems, Astra hopes to succeed where others have stumbled. Kemp said Rocket 4’s development is backed by private funding and revenue from the company’s satellite propulsion division, bolstered by milestone-based payments from the DIU contract.
The company faces a tight development schedule, aiming to begin engine and stage testing this year, with a tentative launch window beginning in Q1 2026. Another mission, the Space Test Program STP-27B, is set for no earlier than Q3 2026.
Astra is also exploring partnerships to integrate drones into suborbital delivery demonstrations, including talks with defense tech company Anduril and reentry vehicle manufacturers. According to Kemp, this could enable rapid deployment of drone fleets to conflict zones in just 45 minutes.
Founded in 2005 and pivoting to launch vehicles in 2016, Astra struggled with repeated early failures—most notably the Rocket 1 and Rocket 2 prototypes in 2018, and limited success with its Rocket 3 series. The company’s reputation took a major hit after a failed NASA mission in 2022, leading to a collapse in investor confidence and a 90% drop in share value by mid-2022.
After going private in July 2024, Astra officially retired Rocket 3 and shifted its focus to the more capable Rocket 4 and its profitable satellite propulsion business. Now, with the Pentagon’s backing and a renewed vision, Astra is betting that mobility, speed, and precision will fuel its second act in the space industry.
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