Although the price of this satellite bus is proprietary, various estimates place the cost at between $100 million and $150 million. One reason for the expense is that Lockheed Martin buys most of the satellite’s elements, such as its reaction wheels, from suppliers.
“Lockheed is amazing at doing those missions with really complex requirements,” Kunjur said. “But they just have not changed the way they build these larger, more complex spacecraft in the last 15 or 20 years.”
Vertical integration is the way?
K2 aims to disrupt this ecosystem. For example, the reaction wheels that Honeywell Aerospace sells to Lockheed cost approximately $500,000 to $1 million apiece. K2 is now on its fourth iteration of an internally built reaction wheel and has driven the cost down to $35,000. Kunjur said about 80 percent of K2’s satellite production is vertically integrated.
The company is now building its first “Mega Class” satellite bus, intended to have similar capabilities to Lockheed’s LM2100: 20 kW of power, 1,000 kg of payload capacity, and propulsion to move between orbits. But it’s also stackable: Ten will fit within a Falcon 9 payload fairing and about 50 within Starship’s fairing. The biggest difference is cost. K2 aims to sell its satellite bus for $15 million.
The US government is definitely interested in this capability. About a month ago, K2 announced that it had signed a contract with the US Space Force to launch its first Mega Class satellite in early 2026. The $60 million contract for the “Gravitas” mission will demonstrate the ability of K2’s satellite bus to host several experiments and successfully maneuver from low-Earth orbit to middle-Earth orbit (several thousand km above the surface of Earth).
Although the Mega Class satellite is attractive to government and commercial customers—its lower cost could allow for larger constellations in middle- and geostationary orbits—Kunjur said he and his brother Neel Kunjur founded K2 to enable more frequent science missions to other planets in the Solar System.
“We looked at the decadal studies and saw all the mission concept studies that were done,” Kunjur said. “There were maybe 50 studies over a 10-year period. And we realized that if NASA funding remains level, we’ll be able to do one or maybe two of these. So we decided to go after one of the big problems.”
So, if we’re moving into an era of launch abundance, K2 might just solve the problem of affordable science satellites to launch on all these rockets—if it all works, of course.
