Avio, the Italian aerospace propulsion company, has announced agreements with U.S. defense giants Raytheon and Lockheed Martin, granting them preferred access to solid rocket motors produced at its planned U.S. manufacturing facility. The announcement was made on November 10th, amidst a surge in global demand for missiles and advanced weaponry, prompting American defense contractors to secure their supply chains.
The new facility, whose location is yet to be disclosed, is expected to be operational by early 2028. According to Avio, the agreement with Lockheed Martin ensures that "Lockheed Martin will have preferred access to a portion of the Avio USA plant production capacity to meet future demand for its products."
Tim Cahill, president of Lockheed Martin Missiles and Fire Control, stated that this collaboration "positions us to increase production of essential capabilities and deliver them to our customers faster as global demand grows." Raytheon will also receive similar preferred access to production capacity under a parallel agreement. This follows a July 2024 contract between the companies for preliminary engineering work on a tactical rocket motor for Raytheon’s Standard missile program for the U.S. Navy.
Bob Butz, vice president of operations, supply chain and quality at Raytheon, commented that the agreement “will help establish an additional supplier of solid rocket motors within the U.S.” Solid rocket motors are crucial components for many missiles and tactical weapons systems produced by both contractors, who are experiencing rapidly increasing demand due to ongoing global conflicts. Avio plans to invest approximately $460 million to enhance its manufacturing capacity, primarily for the new U.S. facility. This initiative follows the company’s 2022 announcement to establish a domestic manufacturing presence for solid rocket motors.
Avio USA, the company's U.S. subsidiary based in Arlington, Virginia, operates under U.S. security and export-control regulations and is governed by a U.S.-led board. The unit is led by retired U.S. Navy Vice Adm. James Syring, former director of the Missile Defense Agency. Syring hailed the Lockheed Martin agreement 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.”
Both Lockheed Martin and Raytheon are also exploring partnerships with other solid rocket motor suppliers and investing in startups in the sector to diversify their supply chains amid escalating demand. Once operational, Avio USA will join a growing number of companies aiming to expand U.S. industrial capacity for large solid rocket motor boosters, where Northrop Grumman and L3Harris are currently the main suppliers.
Avio, which specializes in solid, liquid, and cryogenic propulsion systems, is the prime contractor for Europe’s Vega rocket program and a subcontractor for Ariane 6, which utilizes Vega boosters. The company manufactures solid rocket motors in Italy and has a facility in French Guiana to support space launches.