Washington, DC [US], September 29 (ANI): The US Department of War has announced that it awarded Raytheon a contract valued at up to USD 20.7 billion for the production of AMRAAM missiles destined for American and allied forces, securing a long-term framework to scale up weapons manufacturing.
The contract was formally awarded on September 25 and made public three days later, spanning a five-year period with options for an additional two years. Officials clarified that the USD 20.7 billion figure represents the maximum potential value rather than an immediate expenditure.
Describing the initiative as a joint investment, the department noted participation from the US Air Force, the Navy, and international partners acquiring systems through the Foreign Military Sales programme. The arrangement is designed to bolster domestic output of the Advanced Medium-Range Air-to-Air Missile, commonly known as AMRAAM.
“We are working across the defence industry to ramp production and build the Arsenal of Freedom,” said Michael P. Duffey, the under secretary of war for acquisition and sustainment.
“This award strengthens our ability to equip the Joint Force and our allies with a proven air-to-air capability, ensuring our warfighters maintain a decisive advantage,” he added.
According to the department, AMRAAM manufacturing rates have nearly doubled compared with earlier periods. Providing additional context, Raytheon's parent company, RTX, stated that production figures for 2025 approached double the volume recorded in 2024, though exact missile quantities for either year were not disclosed.
Raytheon indicated that the new agreement builds upon a prior accord targeting an annual output of at least 1,900 AMRAAM units, a distinct production target separate from the financial value of the latest award. The corporation did not disclose specific delivery totals or a set timeframe for fulfilment.
Expressing gratitude towards legislative leadership, the department acknowledged Congress for granting multiyear procurement authority for the missile system. Officials emphasised that additional funding and legislative authorisations would maintain manufacturing momentum and offer long-term stability for producers, though specific funding requests were not detailed.
Raytheon President Phil Jasper highlighted that the enterprise is scaling its labour force, supply network, and manufacturing infrastructure to address requirements from domestic and foreign customers.
“We continue to make significant investments in our workforce, technology, supply chain and facilities to rapidly scale production capacity and meet surging demand from the US Air Force, Navy and our international partners,” Jasper stated.
RTX noted that hundreds of small and medium-sized domestic enterprises participate in the supply chain expansion, alongside ongoing evaluations regarding international co-production possibilities, though specific overseas nations or entities were not identified.
With deployment across 44 countries and integration into 14 distinct platforms, AMRAAM functions both as an air-to-air combat munition and as an interceptor for ground-based NASAMS air defence batteries, rendering production velocity critical across multiple branches of the armed forces.
The US Navy classifies AMRAAM as a radar-guided, solid-propellant air-to-air missile, while Raytheon notes that advanced generations feature enhanced guidance systems and software upgrades. (ANI)
US missile deal puts allies in production push
