Home / Business and Economy / Pentagon Boosts Missile Output: $20.7B Deal Signed
Pentagon Boosts Missile Output: $20.7B Deal Signed
29 Sep
Summary
- Raytheon's AMRAAM missile production to accelerate with a $20.7 billion contract.
- The US aims to replenish stockpiles depleted by Middle East and Ukraine conflicts.
- Congress must appropriate funds for the multiyear deal to ensure full contractor investment.
The Pentagon is significantly boosting the production of AMRAAM missiles, awarding RTX's Raytheon business a provisional multiyear contract valued at $20.7 billion. This strategic move is designed to accelerate the manufacturing of these critical air-to-air missiles.
The primary objective is to replenish US military stockpiles, which have seen substantial depletion due to ongoing conflicts in the Middle East and Ukraine. The US has supplied large quantities of munitions to allies while also utilizing them in its own operations.
The AMRAAM missile is vital for air-to-air jet fighter combat and is integrated into the National Advanced Surface-to-Air Missile System (NASAMS). This system is crucial for defending strategic locations, including the Washington area, and is employed by numerous countries worldwide.
This significant contract follows a pattern of large munitions procurements by the Pentagon this year, aimed at pressuring contractors to increase output faster. However, industry executives have cautioned that Congress has not yet allocated the full funding required for this multiyear commitment. This could potentially delay contractor investments in facilities and components until legislative action is taken.
If Congress ultimately appropriates the funds, the contract would allow RTX to continue investing in its workforce, supply chain, and manufacturing facilities to meet surging US demand. RTX has indicated plans to nearly double AMRAAM production in 2025 compared to the previous year, aligning with the Pentagon's "Arsenal of Freedom" initiative.
