Lockheed Martin and Raytheon Secure Solid Rocket Motor Supply from Avio
In a major step to bolster U.S. missile production capacity, Lockheed Martin and Raytheon have inked agreements with Italian aerospace propulsion company Avio for preferred access to solid rocket motors from the firm’s upcoming U.S.-based manufacturing facility. The announcement, made on November 10, 2025, comes amid escalating global demand for advanced weaponry driven by ongoing international conflicts and supply chain pressures.
The new facility, expected to be operational by early 2028, will significantly expand Avio’s footprint in the United States defense sector. While the precise location remains undisclosed, the plant will serve as a vital addition to the limited pool of American manufacturers capable of producing large solid rocket motors, a segment currently dominated by Northrop Grumman and L3Harris.
Lockheed Martin to Boost Missile Capacity
Under the agreement, Lockheed Martin will receive preferred access to a portion of Avio USA’s production capacity to support future defense programs. Tim Cahill, president of Lockheed Martin Missiles and Fire Control, said the collaboration “positions us to increase production of essential capabilities and deliver them to our customers faster as global demand grows.”
The partnership will help Lockheed Martin meet rising orders for missile systems such as the Patriot PAC-3, Javelin, and HIMARS, which have seen increased deployment across Europe and Asia.
This move aligns with Lockheed Martin’s broader strategy to diversify its supply chain, reduce dependency on existing suppliers, and enhance U.S. industrial resilience in defense manufacturing.
Raytheon Partnership Strengthens U.S. Supply Chain
Similarly, Raytheon, a subsidiary of RTX Corporation, secured comparable rights under the deal. The company’s agreement follows an earlier contract with Avio in July 2024, involving preliminary engineering work on a tactical rocket motor for the U.S. Navy’s Standard Missile program.
Bob Butz, Raytheon’s vice president of operations, supply chain, and quality, highlighted the strategic importance of this development, stating the deal “will help establish an additional supplier of solid rocket motors within the U.S.”
The collaboration supports Raytheon’s efforts to strengthen the domestic supply chain amid increased production demands for missile defense systems such as the SM-2, SM-3, and SM-6.
Avio’s $460 Million U.S. Investment
Avio plans to invest around $460 million in expanding its manufacturing capacity, with the majority of funds allocated to the new U.S. plant. The company’s U.S. arm, Avio USA, is headquartered in Arlington, Virginia, and operates under American security and export-control regulations.
Leading Avio USA is Vice Adm. James Syring (Ret.), former director of the Missile Defense Agency, who described the Lockheed Martin deal as “a pivotal step for the future of Avio USA, solidifying our status as a trusted partner and merchant supplier for both tactical and strategic size solid rocket motors in the U.S.”
Once operational, Avio USA will become a key contributor to the country’s missile propulsion ecosystem, complementing existing players and reducing the risk of supply disruptions that have plagued the industry in recent years.
Expanding U.S. Industrial Capacity
With the addition of Avio USA, the United States is set to increase its industrial capacity for rocket motor production, addressing a critical bottleneck in missile and launch vehicle manufacturing.
Lockheed Martin and Raytheon have been among the most active defense firms in expanding partnerships with domestic and foreign propulsion specialists, ensuring reliable access to essential components. This expansion comes as defense manufacturers face record-high order backlogs, particularly in response to increased NATO defense spending and U.S. strategic deterrence initiatives.
Avio’s Global Footprint and Expertise
Avio, headquartered in Colleferro, Italy, is a major player in both the defense and space propulsion sectors. The company serves as the prime contractor for Europe’s Vega rocket program and a subcontractor for the Ariane 6 launch system, producing solid rocket motors used in European launch vehicles.
The company also operates a key facility in French Guiana, supporting launch operations for the European Space Agency (ESA).
By expanding into the U.S. market, Avio aims to strengthen its role as a global propulsion leader, leveraging decades of experience in solid, liquid, and cryogenic propulsion systems.
Strategic Impact for Lockheed Martin and the U.S.
For Lockheed Martin, this agreement represents more than just an additional supplier — it enhances long-term production stability, ensuring that critical defense systems are delivered on schedule.
As geopolitical tensions rise and the demand for advanced missile defense systems accelerates, this partnership provides Lockheed Martin and Raytheon with a competitive edge in fulfilling both domestic and international contracts.
Conclusion
The new agreements between Avio, Lockheed Martin, and Raytheon mark a turning point in the U.S. defense supply chain, addressing a vital gap in solid rocket motor availability.
With Avio investing heavily in its American manufacturing base, the U.S. defense industry is poised to gain a more resilient and diversified propulsion ecosystem, ensuring it can meet the growing global demand for advanced missile systems.For the latest updates on aerospace, defense, and innovation, visit StartupNews.FYI — your trusted destination for emerging business and technology news.
