IonQ (IONQ) said on Wednesday that it has signed a memorandum of understanding (MOU) with the U.S. Department of Energy (DOE) to accelerate the advancement and deployment of quantum technologies in space.
IonQ will be demonstrating quantum ground-to-orbit-to-ground capabilities as part of the DOE’s Quantum in Space (QIS) initiative, which is the agency’s program aimed at studying and developing quantum systems and technologies.
The agreement calls for IonQ to design and execute on an orbital demonstration of quantum-secure communications utilizing its satellite platform.
The partnership between the company and the DOE will also explore other potential uses of quantum applications in space, including navigation, time synchronization, quantum networking, and sensing.
“By working alongside the DOE, we aim to demonstrate the power of quantum computing and networking to enable new applications for secure communications,” Niccolo de Masi, chairman and CEO of IonQ, said in a statement.
“This MOU reflects the growing importance of quantum technologies in achieving global leadership in space innovation and cybersecurity.”
The exploration of quantum capabilities in orbit as part of the QIS initiative will lead to the development and testing of quantum algorithms, which is expected to eventually lead to quantum computing on satellites.
IonQ said that it will be focusing at first on the demonstration of quantum-secure networking using its satellite assets.
Rima Kasia Oueid, DOE senior commercialization executive and lead architect of the QIS collaboration, said the partnership with IonQ is about “turning possibility into practice and learning by doing.”
“By bringing in new partners, we are accelerating commercialization, demonstrating applications like secure quantum communications, advanced quantum PNT, and quantum sensing, and expanding America’s role in the space economy,” Oueid said.
IonQ’s stock gained 5.1% on the announcement.
Growing through acquisitions
IonQ has pushed to separate itself from other US-based quantum startups – including D-Wave Quantum (QBTS), Rigetti Computing (RGTI) and Quantum Computing (QUBT) – by claiming to be “the only U.S. quantum computing company currently delivering commercial quantum networking systems.”
Speaking at a Morgan Stanley earlier this year, de Masi told Joseph Moore, a managing director and analyst of the semiconductor industry for Morgan Stanley, that IonQ is the “ the 800-pound gorilla of the quantum computing business.”
And the company’s financials support its claims of being the “only quantum commercial business” in the industry at the moment, as its $43.1 million in revenue in 2024 dwarfed its next closest competitor, which was Rigetti with $10.8 million.
In addition to its MOU with the DOE, IonQ announced on Wednesday that it had entered into a definitive agreement to acquire Vector Atomic, a manufacturer of quantum sensors for positioning, navigation and timing (PNT) applications.
IonQ noted that Vector Atomic has amassed over $200 million in government contracts to deliver critical U.S. federal and national security applications.
The acquisition is being made as an all-stock transaction and IonQ will be bringing on all 76 of Vector Atomic’s employees.
The company on Wednesday also completed its previously announced acquisition of Oxford Ionics, a quantum computing company based in the UK.
The deal for Oxford was made through $1.065 Billion in shares of IonQ common stock and approximately $10 Million in cash.
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