Shares of Rocket Lab USA, Inc. (NASDAQ: RKLB) are soaring 13.63% in pre-market trading on Tuesday following the company's announcement of its selection for major U.S. and U.K. defense contracts. The space services company has positioned itself to participate in multi-billion dollar hypersonic development programs, signaling a significant expansion of its government and defense business.

Rocket Lab revealed that it has been chosen by the U.S. Air Force to participate in the $46 billion Enterprise-Wide Agile Acquisition Contract, which runs through 2031. This program is designed to accelerate the adoption of advanced defense technologies across multiple domains. Additionally, the company has been named a supplier for the U.K. Ministry of Defence's £1 billion (approximately $1.3 billion) Hypersonic Technologies & Capability Development Framework, aimed at fast-tracking the nation's hypersonic development pipeline.

The company plans to utilize its Hypersonic Accelerator Suborbital Test Electron (HASTE) launch vehicle, a suborbital variant of its Electron rocket, for high-speed test missions under both agreements. Rocket Lab will offer design, engineering, and launch services, positioning itself to bid for further contracts tied to the two governments' expanding hypersonic initiatives. This selection builds on Rocket Lab's previous experience, having already completed three hypersonic missions for the U.S. Department of Defense launched from Virginia's Wallops Island. The market's enthusiastic response reflects investors' optimism about Rocket Lab's growing role in critical defense and space technology developments.