The investment will expand manufacturing activities across AV’s three existing facilities in the Sandia Science & Technology Park. It will also support the purchase of major capital equipment and the growth of the company’s workforce.
“The growth we’re driving in Albuquerque goes beyond our own business,” said Wahid Nawabi, Chairman, President, and Chief Executive Officer at AV. “It’s about strengthening the domestic defense industrial base, creating high-quality American jobs, and partnering with New Mexico to continue to develop a durable innovation and manufacturing hub that can deliver when it matters most.”
According to the company, the investment will support the development of a vertically integrated, next-generation manufacturing campus. Over the next 10 years, the expansion is expected to generate more than $670 million in economic impact and create more than 450 high-wage jobs.
The project is also intended to increase production of mission-critical defense and space technologies. It will enable scaled domestic manufacturing of directed energy systems and space-grade components while reinforcing New Mexico’s role in the United States defense industrial base.
As part of the initiative, the State of New Mexico and the City of Albuquerque approved a $6 million performance-based incentive package. The funding will be distributed as cash reimbursements tied to verified hiring milestones.
The incentives reflect AV’s long-term commitment to the region’s advanced manufacturing and technology workforce. The company currently employs more than 400 people in New Mexico and has recorded nearly 30 percent year-over-year growth from 2023 to 2026.
AV’s operations in Albuquerque form a key element of the company’s advanced manufacturing strategy. The site is anchored by its Space & Directed Energy Group, which supports next-generation defense, aerospace, and commercial space programs.
The group develops capabilities such as laser communications, counter-unmanned aerial systems, and autonomous and space-based technologies. It also supports prototype development for U.S. military customers and regional testing and operations.
“This move marks a step change in our ability to deliver mission-critical capabilities at scale,” said Mary Clum, President of AV’s Space, Cyber & Directed Energy segment. “Albuquerque is a strategic production and integration hub for space-grade components and directed energy systems that directly support U.S. national security priorities. The state’s partnership allows us to accelerate manufacturing, strengthen domestic supply chains, and deliver advanced capabilities to our customers faster and more reliably.”
The company currently manufactures several systems considered important for national security priorities. These include advanced radio frequency systems, satellite communications ground terminals, laser technologies, and stabilized precision optics and tracking solutions.
“This expansion comes as the federal government continues to emphasize the importance of defense contractors leaning forward, investing in domestic facilities, resilient supply chains, and skilled workforces that can deliver critical capabilities at scale, on time, and cost-effectively,” said Church Hutton, Chief Growth Officer at AV. “AV’s Albuquerque growth reflects this national priority and positions the company to meet accelerating demand across defense, aerospace, and space markets.”
Local officials also highlighted the regional economic benefits of the investment. “Albuquerque is where defense innovation becomes advanced manufacturing,” said Mayor Tim Keller. “With LEDA support, AV Defense is expanding here, bringing hundreds of good-paying jobs and strengthening our local economy.”
