WASHINGTON — Defense technology contractor Anduril Industries has secured a $14.3 million Pentagon contract to expand solid rocket motor production, as the U.S. Department of Defense moves to strengthen domestic manufacturing capabilities amid growing supply chain concerns.
The contract, awarded under the Defense Production Act, will support facility modernization and manufacturing improvements at Anduril’s Mississippi plant, the Pentagon said Jan. 7.
“This agreement leverages Anduril’s substantial $75 million private capital investment and aligns with our strategy to build supply chain resiliency,” Laura Taylor-Kale, assistant secretary of defense for industrial base policy, said in a statement.
California-based Anduril, which acquired solid rocket motor manufacturer Adranos in June 2023, is an emerging player in a sector traditionally dominated by a handful of contractors. The company’s proprietary ALITEC fuel technology, obtained through the Adranos acquisition, promises enhanced missile range capabilities.
The contract follows Anduril’s $19 million agreement with the U.S. Navy in June 2024 to develop rocket motors for the Standard Missile 6 program.
The Pentagon’s investment comes as the Ukraine conflict has exposed vulnerabilities in U.S. weapons production capacity. Military officials have warned about depleting stockpiles of missile systems that rely on solid rocket motors, including Javelin and Stinger missiles.
Industry consolidation has squeezed U.S. solid rocket motor manufacturing since the 1990s, with the number of producers dropping from six to two. The sector has also grappled with limited suppliers for essential components like cases and nozzles.
New market entrants including Anduril, Ursa Major and X-Bow are now seeking 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.
