In a rare victory for international launch competition, SpaceX has snagged a contract to launch an Italian Earth observation satellite from European launch monopoly and political heavyweight Arianespace.
After spending the better part of a decade treading water as SpaceX’s Falcon 9 rocket came to dominate the global launch market, Arianespace has become increasingly reliant on European Space Agency (ESA) and European Union (EU) agreements that require signatories to launch domestic satellites and spacecraft on the Ariane 5, Ariane 6, and Italian Vega rockets. Save for a few slow-moving technology development programs that have yet to bear any actionable fruit, the company – heavily subsidized by the European Union – has almost completely failed to face the threat posed by SpaceX head-on by prioritizing the development of rockets that can actually compete with Falcon 9 and Falcon Heavy on cost, performance, and availability.
Instead, over the last five or so years, Arianespace and the European Space Agency have increasingly pursued political agreements and legislation that commit member states to only fly payloads on Ariane 5, Ariane 6, and Vega rockets if at all possible.
A recent development offers the best look yet at what many European space agencies likely suffer through as a consequence of their governments signing away access to an increasingly competitive launch industry – often seemingly in return for Arianespace selecting contractors or (re)locating development hubs or factories in certain countries. Notably, sometime in September 2021, the Italian Space Agency (ASI) confirmed signs that it was moving the launch of its COSMO SkyMed CSG-2 Earth observation satellite from a new Arianespace rocket to SpaceX’s Falcon 9.
“The second COSMO SkyMed Second Generation satellite (CSG-2) was planned to be launched with VEGA-C within 2021, but the launcher development has been impacted by the VV15 and VV17 failures and, above all, by the COVID pandemic. The delays, postponing the VEGA-C Maiden Flight to Q1 2022, with a consequent tight schedule of launches in 2022, made the launch period of CSG-2 no longer compatible with the needs of the COSMO Mission. Since Arianespace backlog was already full on Soyuz and Ariane systems in 2021, it was not possible to have a European backup solution compliant with the CSG-2 schedule, thus an alternative solution with the US provider SPACE X has been adopted allowing to keep the CSG-2 launch within the current year. In line with its long-lasting support ensured to the European launch industry, ASI confirmed its trust in Arianespace and VEGA-C capabilities by contracting the launch of the CSG-3 satellite, planned for 2024. Moreover, other future launch opportunities for ASI missions with VEGA-C are under discussion, confirming Arianespace as a key partner for the Agency.“
Italian Space Agency (ASI) – September 2021
Weighing around 2.2 tons (~4900 lb), SkyMed CSG-2 is the second of four synthetic aperture radar (SAR) satellites designed to “[observe] Earth from space, meter by meter, day and night, in any weather conditions, to help predict landslides and floods, coordinate relief efforts in case of earthquakes or fires, [and] check crisis areas.” Primarily focused on the Mediterranean, the nature of sun-synchronous orbits (SSOs) nevertheless give SkyMed satellites views of most of the Earth’s surface every day.
SkyMed CSG-1 debuted on an Arianespace Soyuz rocket in December 2019, while CSG-2 was originally scheduled to launch sometime in 2021 on one of the first Arianespace Vega-C rockets. However, in July 2019 and November 2020, the Vega rocket Vega-C is based on suffered two launch failures separated by just a single success. Aside from raising major questions about operator Arianespace and Vega manufacturer Avio’s quality assurance, those near-back-to-back failures also delayed Vega’s launch manifest by years. Combined with limited launch cadence and a jam-packed manifest for Arianespace’s other rockets, that meant that Italy would have likely had to wait 1-2 years to launch SkyMed CSG-2 on a European or Italian-made rocket.
Apparently valuing a timely, affordable launch more than the path of least political resistance, the Italian Space Agency chose to remanifest the second SkyMed satellite on a SpaceX Falcon 9 rocket scheduled to launch no earlier than November 2021. However, based on ASI’s explanation of the move in the quote above, the space agency clearly felt a need to very carefully explain its decision while also repeatedly (and almost fearfully so) signaling its unwavering “trust” in and dedication to “key partner” Arianespace.
That part of the Italian Space Agency’s statement appeared to be a rather distinct reassertion of fealty to Arianespace is made even more unusual by the fact that the Vega rocket SkyMed CSG-2 was meant to fly on is mainly built in Italy by aerospace company Avio – independently owned but a major Arianespace supplier. Further, ASI directing the apologetic portion of its explanation to Arianespace is no less odd given that Arianespace is a private company theoretically independent of space agencies, while moving from Vega to Falcon 9 primarily impacts Avio more than Arianespace and risks raising the ire of Vega development partner ESA. Even further still, ASI itself – not ESA, Avio, or Arianespace – is the source of a majority of Vega development funding over the last decade and a half.
Regardless, at the simplest level, there are clear motivating factors for a space agency primarily funding the development of a certain launch vehicle to want to fly its own payloads on said self-funded rocket. However, after likely taking things a step further and encouraging ESA and the EU to commit to launching as many payloads as possible on its ESA-approved Vega rocket, the Italian Space Agency itself is now discovering the downsides of pushing for political arrangements beneficial to domestic industries while being forced to figure out just how politically viable it is to pursue non-European launch alternatives. There might be a small chance that Italy’s brief taste of freedom to use rockets other than Vega and Ariane 5/6 could encourage other EU members to push back and fight for access to cheaper, more reliable launches. However, it looks far more likely that SkyMed CSG-2 will be a rare outlier for years to come.
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Armored Tesla Cybertruck “War Machine” debuts at Defense Expo 2025
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Tesla Megapacks chosen for 548 MWh energy storage project in Japan
Tesla plans to supply over 100 Megapack units to support a large stationary storage project in Japan, making it one of the country’s largest energy storage facilities.

Tesla’s Megapack grid-scale batteries have been selected to back an energy storage project in Japan, coming as the latest of the company’s continued deployment of the hardware.
As detailed in a report from Nikkei this week, Tesla plans to supply 142 Megapack units to support a 548 MWh storage project in Japan, set to become one of the country’s largest energy storage facilities. The project is being overseen by financial firm Orix, and it will be located at a facility Maibara in central Japan’s Shiga prefecture, and it aims to come online in early 2027.
The deal is just the latest of several Megapack deployments over the past few years, as the company continues to ramp production of the units. Tesla currently produces the Megapack at a facility in Lathrop, California, though the company also recently completed construction on its second so-called “Megafactory” in Shanghai China and is expected to begin production in the coming weeks.
READ MORE ON TESLA MEGAPACKS: Tesla Megapacks help power battery supplier Panasonic’s Kyoto test site
Tesla’s production of the Megapack has been ramping up at the Lathrop facility since initially opening in 2022, and both this site and the Shanghai Megafactory are aiming to eventually reach a volume production of 10,000 Megapack units per year. The company surpassed its 10,000th Megapack unit produced at Lathrop in November.
During Tesla’s Q4 earnings call last week, CEO Elon Musk also said that the company is looking to construct a third Megafactory, though he did not disclose where.
Last year, Tesla Energy also had record deployments of its Megapack and Powerwall home batteries with a total of 31.4 GWh of energy products deployed for a 114-percent increase from 2023.
Other recently deployed or announced Megapack projects include a massive 600 MW/1,600 MWh facility in Melbourne, a 75 MW/300 MWh energy storage site in Belgium, and a 228 MW/912 MWh storage project in Chile, along with many others still.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
Tesla highlights the Megapack site replacing Hawaii’s last coal plant
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Elon Musk responds to Ontario canceling $100M Starlink deal amid tariff drama
Ontario Premier Doug Ford said, opens new tab on February 3 that he was “ripping up” his province’s CA$100 million agreement with Starlink in response to the U.S. imposing tariffs on Canadian goods.

Elon Musk company SpaceX is set to lose a $100 million deal with the Canadian province of Ontario following a response to the Trump administration’s decision to apply 25 percent tariffs to the country.
Starlink, a satellite-based internet service launched by the Musk entity SpaceX, will lose a $100 million deal it had with Ontario, Premier Doug Ford announced today.
Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts.
Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario. U.S.-based businesses will…
— Doug Ford (@fordnation) February 3, 2025
Ford said on X today that Ontario is banning American companies from provincial contracts:
“We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy. Canada didn’t start this fight with the U.S., but you better believe we’re ready to win it.”
It is a blow to the citizens of the province more than anything, as the Starlink internet constellation has provided people in rural areas across the globe stable and reliable access for several years.
Musk responded in simple terms, stating, “Oh well.”
Oh well https://t.co/1jpMu55T6s
— Elon Musk (@elonmusk) February 3, 2025
It seems Musk is less than enthused about the fact that Starlink is being eliminated from the province, but it does not seem like all that big of a blow either.
As previously mentioned, this impacts citizens more than Starlink itself, which has established itself as a main player in reliable internet access. Starlink has signed several contracts with various airlines and maritime companies.
It is also expanding to new territories across the globe on an almost daily basis.
With Mexico already working to avoid the tariff situation with the United States, it will be interesting to see if Canada does the same.
The two have shared a pleasant relationship, but President Trump is putting his foot down in terms of what comes across the border, which could impact Americans in the short term.