WASHINGTON — Defense technology contractor Anduril Industries is entering into a $14.3 million deal with the Pentagon to expand production of solid rocket motors as the Pentagon moves to strengthen domestic manufacturing capabilities amid growing supply chain concerns. won the contract.
The contract, awarded under the Defense Production Act, will support Anduril’s Mississippi facility modernization and manufacturing improvements, the Department of Defense announced on January 7.
“This agreement leverages Anduril’s $75 million worth of private capital investments and is consistent with our strategy to build supply chain resiliency,” said Laura Taylor, assistant secretary of defense for industrial infrastructure policy. = Mr. Kale said in a statement.
California-based Anduril, which acquired solid rocket motor maker Adranos in June 2023, is an upstart in a field traditionally dominated by a small number of contractors. The company’s proprietary ALITEC fuel technology, acquired through the Adranos acquisition, promises to improve missile range capabilities.
This contract follows Anduril’s $19 million contract with the U.S. Navy in June 2024 to develop rocket motors for the Standard Missile 6 program.
The Pentagon’s investment comes after the Ukraine conflict exposed weaknesses in America’s weapons production capabilities. Military officials have warned that stockpiles of missile systems that rely on solid rocket motors, such as Javelin and Stinger missiles, will be depleted.
Since the 1990s, industry consolidation has squeezed solid rocket motor manufacturing in the United States, reducing the number of producers from six to two. The sector is also grappling with limited suppliers of essential components such as cases and nozzles.
New market entrants such as Anduril, Ursa Major, and X-Bow are now attempting to address these bottlenecks.
The Defense Production Act, enacted during the Korean War, gives the president broad authority to direct domestic industry for national defense purposes.
