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Elon Musk's space company, SpaceX, is building a new network of spy satellites in a classified project for an American intelligence agency, according to a Reuters report.

According to reports which cite unnamed sources familiar with the classified contract, the newly planned network will incorporate hundreds of spy satellites. This disclosure coincides with a growing dependency of military and intelligence agencies in the US and other nations on SpaceX and its Starlink satellite network.

SpaceX's dominance in the satellite market has given Musk enormous power in matters of war and geopolitics.

According to Reuters, the new spy satellites are included in a $1.8 billion contract with the National Reconnaissance Office (NRO), responsible for managing spy satellites. The timeline for the activation of the satellite network remains uncertain.

SpaceX has faced increasing scrutiny from Ukraine and certain members of Congress due to the role its Starlink satellites have played in Russia's war against Ukraine. Starlink's satellite internet terminals have been integral to Ukraine's wartime infrastructure and operations.

However, according to a report by a biographer of Elon Musk, the CEO of SpaceX and Tesla, one of the wealthiest individuals globally, blocked Ukraine from utilising Starlink to target Russia's fleet in the Black Sea in 2022.

The report did not specify when the network will become operational or disclose the involvement of other companies