Lockheed Martin nears £2bn UK military satellite contract

The British Ministry of Defence is reportedly close to awarding a contract worth up to £2 billion for the next generation of Skynet military satellites to the American defense contractor Lockheed Martin. This proposed deal would replace the current system, which is produced domestically in the UK by Airbus.

The shift from British-developed technology to a US-sourced alternative has raised significant sovereignty concerns. Critics argue that because Lockheed Martin would likely use components subject to US International Traffic in Arms Regulations (ITAR), Washington could effectively hold a “kill switch” or veto over how the UK operates the system during national crises.

These fears have intensified following reports regarding the restriction of Ukrainian access to Elon Musk’s Starlink satellite service. Additionally, opponents of the deal suggest that moving away from domestic production could jeopardize thousands of UK jobs, potentially conflicting with government pledges to support British businesses.