US missile deal puts allies in production push
The US Department of War has awarded Raytheon a massive $20.7 billion contract to ramp up AMRAAM missile production for American and allied forces.
In a massive move to bolster global air superiority, the US Department of War has awarded Raytheon a contract worth up to USD 20.7 billion for the production of AMRAAM missiles. This strategic agreement is designed to supply both American military branches and international allies, establishing a long-term framework to significantly scale up weapons manufacturing.
The contract, which was formally awarded on September 25 and made public three days later, covers a five-year period with the possibility of extending for an additional two years. Officials have clarified that the $20.7 billion figure represents the maximum potential value of the deal rather than an immediate lump-sum expenditure.
Building the 'Arsenal of Freedom'
The initiative is a collaborative effort involving the US Air Force, the Navy, and various international partners through the Foreign Military Sales programme. The primary goal is to increase the domestic output of the Advanced Medium-Range Air-to-Air Missile, widely known as AMRAAM.
Michael P. Duffey, the under secretary of war for acquisition and sustainment, emphasized the importance of this scale-up.
“We are working across the defence industry to ramp production and build the Arsenal of Freedom,”Duffey stated. He added that the award is crucial for equipping the Joint Force and its allies with proven air-to-air capabilities to maintain a decisive advantage in combat scenarios.
Surging Production Rates
Manufacturing speeds for the AMRAAM system are already seeing a significant uptick. According to department data, production rates have nearly doubled compared to previous periods. RTX, the parent company of Raytheon, noted that production volumes for 2025 are approaching twice the amount recorded in 2024, though specific unit counts remain confidential.
Key details regarding the production surge include:
- Target Output: The agreement builds on a prior accord aiming for an annual output of at least 1,900 AMRAAM units.
- Infrastructure Expansion: Raytheon President Phil Jasper confirmed that the company is scaling its workforce, supply networks, and manufacturing facilities to meet the rising demand.
- Supply Chain Impact: Hundreds of small and medium-sized domestic enterprises are participating in this massive supply chain expansion.
A Versatile Weapon for Global Defense
The AMRAAM is a highly versatile asset, currently deployed across 44 countries and integrated into 14 different combat platforms. While the US Navy utilizes it as a radar-guided, solid-propellant air-to-air missile, the system also serves a critical role as an interceptor for ground-based NASAMS air defence batteries.
As demand surges from the US Air Force, Navy, and international partners, Raytheon is also evaluating possibilities for international co-production to further stabilize the global supply of these advanced munitions.