Lockheed Martin, Avio Partner on Rocket Motor Supply
The defense firms are investing $500 million to expand domestic rocket motor production for the U.S. Army.
Updated on Oct. 13, 2026 in Manufacturing
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Lockheed Martin and Avio signed an agreement to manufacture solid rocket motors for U.S. Army munitions. The deal, which supports the Extended Range Guided Multiple Launch Rocket System and the Precision Strike Missile, seeks to increase supply chain capacity.
Why it matters
The partnership is designed to improve supply chain resiliency and accelerate production lead times for critical defense systems. It marks a significant effort to scale manufacturing capacity for the Army in response to defense demands.
Avio launched an investment of over $500 million to build new domestic solid rocket motor production capacity. The deal aims to address manufacturing bottlenecks for the Extended Range Guided Multiple Launch Rocket System and the Precision Strike Missile.
The players
Lockheed Martin
A global aerospace and defense firm that designs, manufactures, and integrates advanced technology systems for government and commercial customers.
Avio
An aerospace manufacturing firm specializing in space launchers and solid propulsion systems for tactical missiles.
Avio S.p.A.
The Italian parent company of Avio, providing specialized technical expertise in solid propulsion systems.
U.S. Army
The branch of the United States Armed Forces responsible for land-based military operations and defense procurement.
The details
Avio will leverage solid propulsion technical expertise from its Italian parent company, Avio S.p.A., to stand up the new manufacturing infrastructure in the United States. Before reaching full-scale production, the new motors must undergo a qualification process to ensure they meet the rigorous technical standards required for U.S. Army munitions.
Timeline
October 13, 2026: The agreement was announced during the Association of the United States Army annual convention in Washington.
Market Landscape
This investment follows the pattern set by the U.S. Army's industrial base modernization strategy for securing critical munition components. It represents a significant effort to shift from reliance on legacy manufacturing to a more resilient, scalable domestic supply chain.
Operators in the defense supply chain should monitor whether this qualification process sets a new baseline for speed-to-market in missile manufacturing. Changes in procurement requirements or accelerated production timelines could impact vendor qualification cycles for sub-tier suppliers.
The takeaway
Large-scale investments in domestic defense manufacturing indicate a long-term shift toward tightening supply chains for high-demand munitions. Monitor industry announcements regarding vendor qualification requirements for evidence of similar scaling efforts in your sector.
Further reading
For more on industry capacity trends, see our coverage of Manufacturing.
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Should the government prioritize diversifying defense supply chains even if it requires significant corporate investment?
