Touchdown for In-Space Manufacturing Mission: Rocket Lab’s Pioneer Spacecraft Delivers Re-Entry for Varda’s In-Space Manufacturing Capsule in South Australia

LONG BEACH, Calif.--(BUSINESS WIRE)--Feb 28, 2025--

Rocket Lab USA, Inc (Nasdaq: RKLB) (“Rocket Lab” or “the Company”), a leading launch and space systems company, today announced its custom Pioneer spacecraft for Varda Space Industries (“Varda”), a leading orbital pharmaceuticals and hypersonic re-entry logistics company, successfully positioned Varda’s capsule for return to Earth at 1:52 pm UTC on February 27. The capsule landed at the Koonibba Test Range in South Australia, operated by Southern Launch.

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Rocket Lab’s Pioneer spacecraft delivered Varda’s W-2 mission that included a hypersonic re-entry capsule carrying a spectrometer from the Air Force Research Laboratory (AFRL) and a heatshield with a Thermal Protection System (TPS) developed in collaboration with NASA’s Ames Research Center. The mission also carried an expanded bioreactor which will increase Varda’s capacity for processing pharmaceuticals in orbit. The W2 mission is a follow-on from the companies’ first mission, W-1, which operated on orbit for eight months before successfully returning Varda’s capsule to Earth in early 2024. W-1 was a successful demonstration of the world’s first space manufacturing mission conducted outside of the International Space Station.

Following the launch of the W-2 mission on January 14, Rocket Lab operated the spacecraft on orbit for six weeks, delivering critical mission functions for Varda’s 120kg capsule including power, communications, propulsion, and attitude control. The Pioneer spacecraft was designed, built, and tested at Rocket Lab’s Spacecraft Production Complex and headquarters in Long Beach, California. It integrates Rocket Lab’s vertically developed components and systems, including star trackers, propulsion systems, reaction wheels, solar panels, flight software, radios, composite structures, tanks, separation systems, and more.

To return the capsule to Earth, Rocket Lab conducted deorbit, and re-entry targeting maneuvers of the Pioneer spacecraft, setting Varda’s capsule on a precise course to land in the Koonibba Test Range operated by Southern Launch. Rocket Lab successfully executed a series of three propulsion maneuvers or “burns” to align the vehicle for its re-entry path. Starting from a 500km circular orbit, Pioneer initiates a burn to slow things down, dropping out perigee to Earth to 300km. A second engine burn raised the orbits apogee to 900km aligning the spacecraft for its re-entry path. Next, the Pioneer spacecraft conducts a third and final burn that releases Varda’s capsule from approximately 470km altitude. The Varda team led the final mission phase, including parachute deployment, touchdown and recovery. Varda will now analyze the payloads and mission results to inform future missions.

“When Rocket Lab was founded, our initial focus was getting things to space. Now our team have become experts in returning them to Earth too,” said Rocket Lab founder and CEO Sir Peter Beck. “We’re immensely proud to continue our support of Varda’s inspiring vision with a second successful in-orbit mission and re-entry using our Pioneer spacecraft. Missions like W-2 underscore our exceptional capabilities as an end-to-end space company enabling unique and complex programs that unlock the full potential of space.”

"Varda is a leader in repeatable, reliable reentry from orbit to Earth, and the W-2 mission further solidifies this,” said Wendy Shimata, VP of autonomous systems. “With more re-entries coming on the heels of this one, the team at Varda is excited to continue to build toward a thriving orbital economy.”

The W-2 mission is the second of four Rocket Lab Pioneer spacecraft ordered by Varda to support orbital processing, with the third spacecraft complete and shipped to Vandenberg Space Force Base ready for launch in the coming weeks.

+ About Rocket Lab

Founded in 2006, Rocket Lab is an end-to-end space company with an established track record of mission success. We deliver reliable launch services, satellite manufacture, spacecraft components, and on-orbit management solutions that make it faster, easier, and more affordable to access space. Headquartered in Long Beach, California, Rocket Lab designs and manufactures the Electron small orbital launch vehicle, a family of spacecraft platforms, and the Company is developing the large Neutron launch vehicle for constellation deployment. Since its first orbital launch in January 2018, Rocket Lab’s Electron launch vehicle has become the second most frequently launched U.S. rocket annually and has delivered more than 200 satellites to orbit for private and public sector organizations, enabling operations in national security, scientific research, space debris mitigation, Earth observation, climate monitoring, and communications. Rocket Lab’s spacecraft platforms have been selected to support NASA missions to the Moon and Mars, as well as the first private commercial mission to Venus. Rocket Lab has three launch pads at two launch sites, including two launch pads at a private orbital launch site located in New Zealand and a third launch pad in Virginia. To learn more, visit www.rocketlabusa.com.

+ Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our launch and space systems operations, launch schedule and window, safe and repeatable access to space, Neutron development, operational expansion and business strategy are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “strategy,” “future,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the factors, risks and uncertainties included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as such factors may be updated from time to time in our other filings with the Securities and Exchange Commission (the “SEC”), accessible on the SEC’s website at www.sec.gov and the Investor Relations section of our website at www.rocketlabusa.com, which could cause our actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

+ About Varda:

Varda Space Industries is expanding the economic bounds of humankind by designing and building the infrastructure needed to make low Earth orbit accessible to industry, from in-orbit production equipment to reliable and economical reentry capsules. The company operates out of El Segundo, California with office and industrial production space. You can follow Varda on X (@vardaspace) and LinkedIn.

Rocket Lab’s Pioneer Spacecraft Delivers Re-Entry for Varda’s In-Space Manufacturing Capsule in South Australia. Credit: William Godwin, courtesy Varda Space Industries

NEW YORK (AP) — Reviving a campaign pledge, President Donald Trump wants a one-year, 10% cap on credit card interest rates, a move that could save Americans tens of billions of dollars but drew immediate opposition from an industry that has been in his corner.

Trump was not clear in his social media post Friday night whether a cap might take effect through executive action or legislation, though one Republican senator said he had spoken with the president and would work on a bill with his “full support.” Trump said he hoped it would be in place Jan. 20, one year after he took office.

Strong opposition is certain from Wall Street in addition to the credit card companies, which donated heavily to his 2024 campaign and have supported Trump's second-term agenda. Banks are making the argument that such a plan would most hurt poor people, at a time of economic concern, by curtailing or eliminating credit lines, driving them to high-cost alternatives like payday loans or pawnshops.

“We will no longer let the American Public be ripped off by Credit Card Companies that are charging Interest Rates of 20 to 30%,” Trump wrote on his Truth Social platform.

Researchers who studied Trump’s campaign pledge after it was first announced found that Americans would save roughly $100 billion in interest a year if credit card rates were capped at 10%. The same researchers found that while the credit card industry would take a major hit, it would still be profitable, although credit card rewards and other perks might be scaled back.

About 195 million people in the United States had credit cards in 2024 and were assessed $160 billion in interest charges, the Consumer Financial Protection Bureau says. Americans are now carrying more credit card debt than ever, to the tune of about $1.23 trillion, according to figures from the New York Federal Reserve for the third quarter last year.

Further, Americans are paying, on average, between 19.65% and 21.5% in interest on credit cards according to the Federal Reserve and other industry tracking sources. That has come down in the past year as the central bank lowered benchmark rates, but is near the highs since federal regulators started tracking credit card rates in the mid-1990s. That’s significantly higher than a decade ago, when the average credit card interest rate was roughly 12%.

The Republican administration has proved particularly friendly until now to the credit card industry.

Capital One got little resistance from the White House when it finalized its purchase and merger with Discover Financial in early 2025, a deal that created the nation’s largest credit card company. The Consumer Financial Protection Bureau, which is largely tasked with going after credit card companies for alleged wrongdoing, has been largely nonfunctional since Trump took office.

In a joint statement, the banking industry was opposed to Trump's proposal.

“If enacted, this cap would only drive consumers toward less regulated, more costly alternatives," the American Bankers Association and allied groups said.

Bank lobbyists have long argued that lowering interest rates on their credit card products would require the banks to lend less to high-risk borrowers. When Congress enacted a cap on the fee that stores pay large banks when customers use a debit card, banks responded by removing all rewards and perks from those cards. Debit card rewards only recently have trickled back into consumers' hands. For example, United Airlines now has a debit card that gives miles with purchases.

The U.S. already places interest rate caps on some financial products and for some demographics. The Military Lending Act makes it illegal to charge active-duty service members more than 36% for any financial product. The national regulator for credit unions has capped interest rates on credit union credit cards at 18%.

Credit card companies earn three streams of revenue from their products: fees charged to merchants, fees charged to customers and the interest charged on balances. The argument from some researchers and left-leaning policymakers is that the banks earn enough revenue from merchants to keep them profitable if interest rates were capped.

"A 10% credit card interest cap would save Americans $100 billion a year without causing massive account closures, as banks claim. That’s because the few large banks that dominate the credit card market are making absolutely massive profits on customers at all income levels," said Brian Shearer, director of competition and regulatory policy at the Vanderbilt Policy Accelerator, who wrote the research on the industry's impact of Trump's proposal last year.

There are some historic examples that interest rate caps do cut off the less creditworthy to financial products because banks are not able to price risk correctly. Arkansas has a strictly enforced interest rate cap of 17% and evidence points to the poor and less creditworthy being cut out of consumer credit markets in the state. Shearer's research showed that an interest rate cap of 10% would likely result in banks lending less to those with credit scores below 600.

The White House did not respond to questions about how the president seeks to cap the rate or whether he has spoken with credit card companies about the idea.

Sen. Roger Marshall, R-Kan., who said he talked with Trump on Friday night, said the effort is meant to “lower costs for American families and to reign in greedy credit card companies who have been ripping off hardworking Americans for too long."

Legislation in both the House and the Senate would do what Trump is seeking.

Sens. Bernie Sanders, I-Vt., and Josh Hawley, R-Mo., released a plan in February that would immediately cap interest rates at 10% for five years, hoping to use Trump’s campaign promise to build momentum for their measure.

Hours before Trump's post, Sanders said that the president, rather than working to cap interest rates, had taken steps to deregulate big banks that allowed them to charge much higher credit card fees.

Reps. Alexandria Ocasio-Cortez, D-N.Y., and Anna Paulina Luna, R-Fla., have proposed similar legislation. Ocasio-Cortez is a frequent political target of Trump, while Luna is a close ally of the president.

Seung Min Kim reported from West Palm Beach, Fla.

President Donald Trump arrives on Air Force One at Palm Beach International Airport, Friday, Jan. 9, 2025, in West Palm Beach, Fla. (AP Photo/Julia Demaree Nikhinson)

FILE - Visa and Mastercard credit cards are shown in Buffalo Grove, Ill., Feb. 8, 2024. (AP Photo/Nam Y. Huh, File)