Rocket Lab pushes back first Neutron launch to 2027

Rocket Lab has once again postponed the maiden launch of its Neutron rocket, citing carbon composite manufacturing problems. This delay comes more than five years after the company announced development of the launcher, which is capable of sending up to 13,000 kg to Low Earth Orbit. Initial launch targets were set for 2024, then 2025, followed by 2026.

However, the new expected launch date is now 2027. During a briefing, Rocket Lab's CEO Peter Beck indicated that testing of the problematic components is expected to be completed by the end of Q1 2027. The issue stems from manufacturing problems with a first-stage tank, which failed qualification due to third-party processing. The company switched to its own internal processes, but recently encountered an issue with the propellant dome manufacturing, which involves voids forming within the carbon composite layers.

While Beck stated that the problem is resolved, dealing with it has led to the delay. Initially, Rocket Lab aimed to deliver Neutron to the launch pad in Q4 2026. Now, the cryo and hydrostatic test campaigns are not expected to wrap up until Q1 2027. Following the announcement, Rocket Lab's shares have declined from around $63 to near $53 in after-hours trading.

When operational, Neutron will feature a reusable first stage with a Hungry Hippo clamshell fairing, which deploys a second stage before returning to Earth. The timing of Neutron's availability is significant, as it could come as SpaceX reportedly seeks to wind down Falcon 9 in favor of Starship. Despite Falcon 9's heavier payload capacity, Neutron's mass capability places it in the same class. Assuming it makes it to the launchpad, Neutron's availability remains uncertain.