On paper, the merger may seem an unusual pairing. On the one hand, Schaeffler, a German giant historically known for its bearings, automotive components and industrial technologies. On the other, Spire Global, a specialist in satellite data and nanosatellite constellations, already established in Luxembourg. Yet, from an industrial perspective, the logic behind the move appears remarkably sound.
The memorandum of understanding signed by the two groups and announced on Wednesday 27 May aims to develop space subsystems, satellite platforms and advanced RF (radio frequency) and environmental detection capabilities. The ambition goes far beyond mere technological cooperation: the two companies explicitly mention the creation, by the end of the decade, of a “sovereign European entity specialising in space equipment and missions”.
The choice of vocabulary is worth noting. ‘Sovereign’, ‘manufactured in Germany’, ‘deployable at scale’, ‘critical infrastructure’, ‘defence’. The European space sector is gradually moving towards a strategy of strategic reindustrialisation comparable to that seen in the semiconductor, cloud computing and defence sectors.
An interesting scaling exercise
The most interesting aspect is probably the way the two players complement each other. Spire brings concrete space experience to the table, having launched more than 240 satellites since 2013 and with a production capacity of 300 to 400 satellites per year across the US and Europe. Schaeffler, for its part, brings exactly what is often lacking in European New Space: significant industrial clout, industrialisation capabilities, supply chains and a manufacturing culture on a very large scale.
However, it is precisely this issue of scaling up that is becoming central to the European space sector. Producing just a few satellites is no longer enough. Future sovereign European constellations – whether for observation, connectivity, defence or meteorology – will require production capacities on a scale comparable to those of the automotive industry.
And Schaeffler appears to have fully recognised this shift. In its 2025 annual report, the group explains that it aims to become “the leading Motion Technology Company” and to significantly diversify its activities beyond the automotive sector. The aerospace and defence sectors are explicitly identified as strategic growth areas. The group now claims a much broader vision than its historical role as an automotive supplier. “Schaeffler is more than just the automotive sector and more than just bearings,” says its CEO, Klaus Rosenfeld. The annual report even sets out a strategy to generate 10% of revenue from new business areas by 2035, particularly in humanoid robotics and defence.
Moving away from a traditional approach
This development is no small matter. With nearly 110,000 employees and revenues in excess of €23bn, Schaeffler possesses considerable industrial clout. Its expertise spans motors, bearings, power electronics, motion systems and precision technologies. These are precisely the building blocks the European satellite industry will need if it is to move beyond a small-scale, artisanal approach.
For Spire, the benefits are equally clear. The company, which already has its European headquarters in Luxembourg, is seeking to strengthen its industrial presence in Europe. In May 2025, it opened a satellite manufacturing plant in Munich. The partnership with Schaeffler now gives it access to a German industrial base and to European defence and government networks. A strategy aligned with that of… Luxembourg in general, and SES in particular, which announced earlier this year its intention to add a new line of business by building its own satellites for low Earth orbit.
