Rocket Lab raised the price of its Neutron medium-lift rocket to $70 million per launch, up from $55 million, the company announced on Monday. The price increase reflects strong demand for a vehicle that has not yet flown.
Rocket Lab founder and CEO Peter Beck attributed the increase to tight launch capacity. "Launch is extremely constrained, and that is exactly the situation we predicted," Beck said during the company's third-quarter earnings call. "We saw a pent-up launch market on the horizon, and rather than provide early discounted launches, we set out to deliver a rocket into an environment with extreme demand at full price or higher."
Neutron stands 141 feet tall with a reusable first stage and can carry 13 metric tons to low Earth orbit. The rocket is scheduled to debut in 2027, delayed from an earlier target of late 2026 due to manufacturing issues. Rocket Lab, known for its smaller Electron rocket that completed its 90th orbital mission, booked eight Neutron launches during the third quarter at the higher price. Beck stated that Neutron's first 16 launches are now sold out, with future bookings extending into the 2030s.
The demand surge stems partly from SpaceX's plan to retire Falcon 9, which currently costs $74 million per launch and can haul approximately 22.7 metric tons to orbit. SpaceX intends to shift launch operations to its fully reusable Starship megarocket, but early Starship flights will prioritize internal needs including SpaceX's Starlink V3 broadband network and Starmind AI data-center constellation, neither of which will be available for commercial customers immediately.
Beck noted that the launch bottleneck should also drive demand for Electron, as small-satellite operators currently booking rideshare slots on Falcon 9 will need alternative providers.