On November 22, 2024, SolAero Technologies Corp., a wholly-owned subsidiary of Rocket Lab USA, Inc., finalized a Direct Funding Agreement with the U.S. Department of Commerce for up to $23.9 million in funding under the CHIPS and Science Act. The funds will support the development of compound semiconductor manufacturing capability and capacity at SolAero's Albuquerque, New Mexico facility, disbursed according to a milestone-based schedule. Rocket Lab entered a Guarantee and Equity Contribution Agreement, guaranteeing SolAero's obligations and committing at least $32 million in equity to fund project construction. Assets funded by the award are held in trust for the Department, and both entities face restrictions on partnerships, joint ventures, mergers, acquisitions, asset disposals, capital contributions, stock buybacks, and dividends without prior Department consent. A press release was issued on November 25, 2024.

This non-dilutive $23.9M grant bolsters SolAero's (space-grade solar cells) production capacity, aiding Rocket Lab's vertical integration and Neutron rocket scalability amid growing launch demand. The $32M equity commitment is manageable but ties capital to the project; operational restrictions are typical for CHIPS funding but may limit M&A flexibility short-term. Positive for long-term growth; investors should monitor milestone progress and facility output for revenue uplift.