The Department of War announced a partnership with L3Harris Technologies, agreeing to invest $1 billion to secure U.S. solid rocket motors. The agreement is the “first direct-to-supplier partnership of this kind,” the Department said, describing its commitment to a “convertible preferred equity investment in L3Harris’ Missile Solutions business, which will become a separate company as part of this transaction.”
The partnership allows the Department and L3Harris to negotiate multi-year frameworks for solid rocket motors and provides the “upfront investment and stability needed to increase production, modernize facilities, and bolster industrial resilience,” the War Department explained, noting that the action is a direct result of its “Go Direct-to-Supplier” initiative.
Michael Duffey, Under Secretary of War for Acquisition and Sustainment, said in a statement, “We are fundamentally shifting our approach to securing our munitions supply chain.”
“By investing directly in suppliers we are building the resilient industrial base needed for the Arsenal of Freedom,” Duffey said. “This direct-to-supplier model is a crucial step toward replenishing stockpiles, rebuilding our military, and reestablishing deterrence by ensuring the availability of critical components.”
L3Harris said the agreement supports Missile Solutions’ “rapid expansion of capacity for the DoW’s critical missile programs,” such as AC-3, THAAD, Tomahawk and Standard Missile.
“We’re taking action to build today’s ‘Arsenal of Freedom’ by launching a pure-play missile solutions provider,” said Christopher Kubasik, Chairman and CEO of L3Harris. “Recent Trump Administration actions have placed renewed emphasis on strengthening the defense industrial base and reinvigorating competition following a 30-year wave of consolidation. Building on several years of sustained investment and operational improvements by L3Harris, this new company will serve as a key partner to the DoW in supporting efforts to deter and defeat America’s adversaries.”
