Rocket Lab USA Inc (NASDAQ:RKLB) shares are rising in Monday’s after-hours session after the company announced it was onramped to two separate multi-billion dollar defense contracts.

What Happened: Rocket Lab announced that it was selected to provide hypersonic test launch capabilities with its Hypersonic Accelerator Suborbital Test Electron (HASTE) launch vehicle in two multi-billion dollar government development programs in the U.S. and U.K.

The U.S. Air Force selected Rocket Lab to participate in its $46 billion Enterprise-Wide Agile Acquisition contract designed for the rapid acquisition of innovative technologies, engineering services and technical solutions. The program has a contracting period through 2031.

Rocket Lab said it was also selected by the U.K.’s Ministry of Defence for its hypersonic technologies and capability development framework. The framework of approximately $1.3 billion aims to rapidly develop advanced hypersonic capabilities for the U.K.

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“The ability to contribute toward the collective security of the United States and the United Kingdom across both of these important programs is a proud moment for the HASTE team, and a demonstration of Rocket Lab’s commitment to lead from the front when it comes to innovative and unique solutions for hypersonic technology development,” said Peter Beck, founder and CEO of Rocket Lab.

“Keeping pace with global developments means more affordable tests at a higher rate that expands the boundaries of hypersonic technology -- and that’s a capability we’re already providing all in one platform with HASTE, at a commercial price and cadence that serves the mission of both nations.”

Rocket Lab said it intends to bid for contracts and task orders served by its HASTE launch vehicle, as well as other engineering, design and launch services.

RKLB Price Action: Rocket Lab shares were up 5.70% after-hours, trading at $20.22 at the time of publication Monday, per Benzinga Pro.

Photo: Courtesy of Rocket Lab.