Italy bets 100M on space smart factory to boost Europes satellite game

By the end of this year, Italy is set to open one of Europe’s largest and most advanced satellite manufacturing centres on the outskirts of Rome. A collaboration between the Italian Space Agency (ASI) and Thales Alenia Space, a joint venture between Leonardo and France’s Thales, this €100 million project signals Europe’s determination to close the gap with the United States and China in satellite production and space technology.
The new 21,000-square-metre Space Smart Factory will be a cornerstone of Europe’s growing aerospace ambitions. Funded partly through EU post-COVID recovery funds, it is designed to produce around 100 satellites per year, roughly two every week. The facility brings together around 150 small and medium enterprises in Italy’s aerospace ecosystem, fostering innovation and collaboration across the supply chain.
These satellites will serve both civilian and defence purposes, contributing to Italy’s upcoming national low-orbit constellation of over 100 dual-use satellites. ASI PresidentTeodoro Valentedescribed the site as central to Italy’s space expansion.
Meanwhile, Leonardo and Thales are in discussions with Airbus to form a larger European satellite manufacturing alliance. Such a move could further strengthen Europe’s industrial capacity and technological independence in the face of growing competition from commercial players like SpaceX.
The Space Smart Factory is more than just a manufacturing site. It is a digital and modular production ecosystem. Using flexible automation, advanced robotics, and cobotics (collaborative robots), the facility can adapt to build satellites across different sizes and purposes. From Earth observation and telecommunications to reusable space vehicles, it can reconfigure its cleanrooms and production lines to meet rapidly changing demands.
The factory integrates digital twin technology, virtual and augmented reality, and advanced numerical modelling into every stage of design and assembly. This digital-first approach ensures precision, scalability, and cost efficiency. The facility will also be a key contributor to major European programs such as the Galileo second-generation satellites, the Copernicus ROSE-L and CIMR missions, and Italy’s defence satellite Sicral 3.
Once fully operational, it will recruit additional skilled professionals, further strengthening Italy’s space workforce. By combining innovation with sustainability, the building itself reflects future-focused engineering. It is LEED-certified, powered partly by solar panels, and equipped with rainwater recovery systems.
A defining element of the project is the Space Joint Lab, a training and innovation hub supported by ASI through PNRR funds. The lab will nurture new talent in space engineering and drive research in partnership with startups, SMEs, and universities such as Politecnico di Milano and Sapienza University of Rome. Collaborating with industry partners like Accenture, it aims to bridge academic excellence with industrial know-how, fueling new developments in satellite technologies and digital aerospace systems.
Sustainability, education, and innovation are at the heart of this initiative. The Rome factory is designed not only to build satellites but also to shape Europe’s next generation of engineers, scientists, and space entrepreneurs. As Europe scales up its space capabilities, the Space Smart Factory stands as a symbol of renewed ambition, transforming Italy into a central player in the global race for orbital dominance.
Adolfo Urso, Minister for Enterprises and Made in Italy, said: “This project also stands as a concrete example of effective collaboration between the public and private sectors and of the virtuous use of PNRR funds. Italy knows how to invest with strategic vision in key sectors, generating growth and qualified employment. We are at the forefront of strengthening our technological sovereignty and projecting our industrial system into the future,” said Adolfo Urso, Minister for Enterprises and Made in Italy.
Teodoro Valente, President of the Italian Space Agency, said: “The Space Factory program also represents a virtuous example of public-private collaboration for the benefit of the entire national ecosystem, having effectively used the resources of the PNRR to permanently endow the country with a strategic asset. Thanks to the functionality and production capacity of this plant, Italy stands as a reference point for the realisation of large satellite infrastructures in the field of Earth Observation, Telecommunications and Navigation.”
“I’m especially proud to inaugurate this new state-of-the-art facility, designed to rank among the world’s most advanced for space system production,” saidHervé Derrey, President and CEO of Thales Alenia Space. “Leveraging the latest technologies, the Space Smart Factory will enhance Thales Alenia Space’s production capacity and its global competitiveness as a leading player in Europe’s space industry. In that sense, our company will even more support European and national sovereign programs as well as the continent’s major space ambitions, including in large constellations.”
“The new space factory, an investment that looks to the future and is the result of the vision of the Italian Space Agency, institutions and the company, is a benchmark for production paradigms of the European space industry,” declaredMassimo Claudio Comparini, Managing Director of Leonardo’s Space Division and Chairman of the Thales Alenia Space Supervisory Board.“