Department of War outlines $1 billion direct investment to expand solid rocket motor supply for U.S. missile systems

By Lukasz Prus (Defence Industry Europe)

Department of War has signed a letter of intent with L3Harris Technologies setting out agreed terms for a $1 billion direct-to-supplier investment to expand U.S. solid rocket motor production capacity. The initiative marks the Department’s first partnership of this type and involves a convertible preferred equity investment in L3Harris’ Missile Solutions business, which will be separated into a standalone company as part of the transaction.
Photo: U.S. Navy.

Department of War has signed a letter of intent with L3Harris Technologies setting out agreed terms for a $1 billion direct-to-supplier investment to expand U.S. solid rocket motor production capacity. The initiative marks the Department’s first partnership of this type and involves a convertible preferred equity investment in L3Harris’ Missile Solutions business, which will be separated into a standalone company as part of the transaction.

 

The arrangement enables the Department and L3Harris to pursue multi-year procurement framework agreements for solid rocket motors, subject to Congressional authorisation and appropriations, with an initial public offering planned for the second half of 2026. The investment is intended to increase production capacity, modernise facilities and strengthen industrial resilience within a critical segment of the U.S. munitions supply chain.

“We are fundamentally shifting our approach to securing our munitions supply chain,” said Michael Duffey, Under Secretary of War for Acquisition and Sustainment. “By investing directly in suppliers we are building the resilient industrial base needed for the Arsenal of Freedom.”

 

 

The Department said the investment reflects its Acquisition Transformation Strategy and “Go Direct-to-Supplier” initiative, which aim to reduce costs and timelines while addressing single points of failure in the industrial base. Funding will support further expansion of solid rocket motor capacity for key missile programmes including PAC-3, THAAD, Tomahawk and Standard Missile, following L3Harris’ acquisition of Aerojet Rocketdyne, now Missile Solutions.

According to the Department, the partnership also represents progress for its Munitions Acceleration Council, established to address supply chain vulnerabilities and convert urgent operational demand into sustainable production capacity. Multiple Department offices and military departments are involved in developing and advising on these investment approaches to strengthen the U.S. industrial base.

 

Source: United States Department of War.

 

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