Pentagon awards $20.7 billion deal to boost AMRAAM missile production
The Pentagon has awarded defense contractor Raytheon a provisional multiyear contract worth $20.7 billion to accelerate production of AMRAAM missiles as the United States seeks to replenish weapons stockpiles depleted by the wars in Ukraine and the Middle East.
The missiles are used both by fighter jets and NASAMS air defense systems, which are operated by Ukraine and more than a dozen other countries.
Raytheon said it nearly doubled AMRAAM production in 2025 and is targeting annual output of at least 1,900 missiles.
The deal is part of the Pentagon's “Arsenal of Freedom” initiative aimed at accelerating weapons production.
However, Congress has not yet appropriated the funding needed for the full multiyear commitment. Industry executives have warned that manufacturers may be unable to make large-scale investments in facilities and components until lawmakers approve the money.
If funded, the contract would allow Raytheon to continue investing in its workforce, supply chain and production facilities.
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