This Is Real Life: Rolls Royce Is Building Nuclear Power for Space

Good morning everyone. Happy Monday.

I hope you’re ready because today’s post reads like sci-fi, but this is real life.

Rolls-Royce wants to deploy its micronuclear reactors on the Moon. The UK-based aerospace & defence company seeks partners – calling for launch, lunar transportation and landing services collaborators. 

Rolls-Royce first unveiled its micro-nuclear reactor built for Space in 2023. The company aims to deploy the Jetsons-like device by the early-2030s. 

These guys are playing the long game.

We can only speculate as to the companies they might partner with, but it’s open to all participants – foreign and domestic. 

Micro Nuclear Is A Micro Business – Today

Rolls-Royce is a beast. It boasts an $87B market cap and generates more than $20B in annual revenue. 

Approximately 50% of the company’s income comes from from its Civil Aerospace segment – designing and manufacturing jet engines. The revenue generated by its nuclear endeavors is a rounding error presently. 

However, the nuclear initiative is not a short-term strategy to pump its next earnings report. Rolls-Royce is positioning itself for the future. 

The gif above is the company’s rendering of a lunar-based energy facility. Rolls released the clip in January 2024. It’s unbelievable.

Price Is Truth

Rolls-Royce is already doing something right. The stock is up +96% in the last year compared to the S&P 500’s modest +11% gain and +7% from the iShares Europe ETF. 

The company is benefiting from the strength in European Aerospace and Defense stocks as the reality sinks in that Europe will need to defend itself.

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Godspeed – Rosebee

_{Disclosure: The author of this newsletter holds $ACHR/W. This publication is for informational purposes only and is not a recommendation to buy or sell securities.}