Three things learned from the opening of Rocket Lab's LC-3 launch pad

Last week, while the S&P 500 experienced a downward movement, the stock price of the space rocket operator "Rocket Lab" (NASDAQ: RKLB) rose by 9.5% on Friday to close out the week. I know the reason for this because I was there.

On Thursday, August 28, Rocket Lab officially opened the "Launch Complex" LC-3, the third in the world, at the Mid-Atlantic Regional Spaceport of the Virginia Spaceport Agency off the coast of Wallops Island, Virginia.

LC-3 will serve as the home of Rocket Lab's latest and largest rocket, "Neutron." Standing 141 feet tall, Neutron uses methane and liquid oxygen as fuel and has 43 times the capability of the current only rocket, "Electron," allowing it to carry 13 metric tons to low Earth orbit. Neutron is scheduled for its first test flight from LC-3 later this year.

Of course, this information was already known. We have known since Sir Peter Beck, the CEO of Rocket Lab, promised the development of Neutron four years ago. However, let me introduce three things I learned for the first time by attending the LC-3 ribbon-cutting last week.

From MARS to Mars

As Virginia Governor Youngkin pointed out in his opening remarks, Neutron will be launched from the Mid-Atlantic Regional Spaceport ("MARS"). And as CEO Beck stated, larger rockets can send larger payloads further— including Mars.

In fact, Rocket Lab has already manufactured and prepared two satellites heading to Mars as part of the ESCAPADE science mission with the University of California, Berkeley's Space Science Lab and NASA. However, there was a delay as there was no rocket large enough to carry them, and they were trying to hitch a ride on other companies' rockets (SpaceX's Falcon Heavy and Blue Origin's New Glenn).

Once the neutron is ready, Rocket Lab will gain the means to reach Mars by its own power.

Targeting SpaceX

The neutron, which has a payload capacity 43 times that of an electron, has been said to be ideal for deploying satellite constellations in Earth's orbit. However, looking at the latest description of this medium-sized rocket, the company seems to be preparing to compete in the "cargo supply" market against rivals such as SpaceX and Northrop Grumman.

What is the target of supply? It is clear that the International Space Station requires regular supplies, and currently, SpaceX and Northrop Grumman are fulfilling that function. However, NASA has opened the door for other companies to bid on commercial resupply service contracts, awarding a contract to Sierra Nevada Corporation in 2016. Yet, nearly ten years later, Sierra Nevada has not actually executed any resupply missions.

It seems that there is a gap where Rocket Lab can be buried.

The American Government Seeks Astronauts

The biggest announcement at last week's LC-3 opening was a hint about an ambition that had not been anticipated until now: putting astronauts into orbit.

In describing the mission that Neutron is expected to carry out, Rocket Lab specifically mentioned "ultimately, crewed spaceflight as well" in addition to everything that has already been discussed.

This has rekindled early hopes that Neutron could become a third option for sending astronauts into space, alongside SpaceX's Crew Dragon and Boeing's unfortunate Starliner, for NASA and other space users.

Indeed, Rocket Lab did not reveal details about the development plan for the crewed spacecraft that Neutron will carry. However, even hints during the LC-3 opening have led investors to start discussing Rocket Lab's plans. These include a wide range of possibilities from crew maintenance on the space station, sending astronauts to the Moon and Mars, to even space tourism in low Earth orbit.

Please wait for further updates. I will inform everyone as soon as I know the details.

Disclaimer: For informational purposes only. Past performance is not indicative of future results.

AI: Rich Smith is investing in Rocket Lab. The Motley Fool is investing in Rocket Lab and recommends its stock. The Motley Fool has an information disclosure policy.