The Biden administration on Thursday eased export restrictions on U.S. commercial space companies to ship certain satellite and spacecraft-related items to allies and partners.
The changes are intended to make it easier for the growing U.S. commercial space industry to expand sales while also protecting national security and foreign policy interests.
U.S. space companies like Elon Musk’s SpaceX, and large defense contractors with space units like Lockheed Martin (LMT.N), opens new tab, L3Harris Technologies (LHX.N), opens new tab and Boeing (BA.N), opens new tab, could benefit from the new rules, which were posted in the Federal Register on Thursday afternoon.
“As the diversity of commercial activity in space grows, these rules will reduce the burden for U.S. industry to continue innovating and leading in the space sector,” Don Graves, deputy secretary of the Department of Commerce, said in a statement.
The updates will also add to the U.S.’s ability to “broaden and deepen international partnerships, to grow our economy and to collaborate on mutual space priorities,” Graves said.
Certain items involving remote sensing spacecraft or space-based logistics assembly, and servicing spacecraft will no longer need licenses for shipment to Australia, Canada, and the United Kingdom, the Commerce Department said in the statement.
The rules could help the U.S. push ahead with the trilateral AUKUS security pact between Britain, the U.S. and Australia formed in 2021 to respond to China’s growing power in the Indo-Pacific region. Part of the pact is focused on technology sharing.
Some less sensitive satellite and spacecraft parts and components will no longer require licenses for shipment to over 40 countries. The countries include Canada, Australia, Japan, South Korea and most of the European Union, a person familiar with the matter said.
In addition, the Commerce Department will do away with license requirements for the least sensitive items like electrical connectors for most of the world, but not countries of concern like Russia and China, the person said.