Lockheed Martin and Avio Signed Rocket Motor Deal

The defense companies partnered to bolster U.S. munitions supply chains and expand domestic production capacity.

Updated on Oct. 13, 2026 in Manufacturing

Bold flat-color editorial illustration in navy, cream, and deep red, showing a simplified cylindrical rocket motor casing. — Lockheed Martin and Avio signed a partnership agreement to produce solid rocket motors, aiming to bolster U.S. domestic munitions production capacity. AI Illustration. Upload story photo >

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Lockheed Martin and Avio have signed an agreement to produce solid rocket motors for U.S. Army munitions. The deal is designed to increase manufacturing speed and overall capacity for critical defense systems.

Why it matters

This partnership aims to improve supply chain resiliency for essential military hardware. By expanding production within the United States, the companies hope to address the growing demand for advanced defense munitions.

Avio has launched an investment of over $500 million to expand its solid rocket motor production capacity in the United States. This move follows the formal agreement to manufacture motors for the Extended Range Guided Multiple Launch Rocket System and the Precision Strike Missile.

The players

Lockheed Martin

Lockheed Martin is a global aerospace and defense company that provides advanced systems for military and commercial customers.

Avio

Avio is an aerospace company specializing in propulsion systems and space launch vehicles.

Avio S.p.A.

Avio S.p.A. is the Italian parent company that provides the underlying solid propulsion expertise for Avio.

The details

Avio will utilize technical expertise from its parent firm, Avio S.p.A., to support the development of these rocket motors. All new production facilities within the U.S. will undergo a rigorous qualification process to meet military standards.

October 13, 2026: The agreement was officially announced at the Association of the United States Army convention.

Market Landscape

This partnership reflects a broader industry trend toward near-shoring and hardening defense supply chains against global disruption. It positions Avio as a significant competitor in the domestic U.S. solid rocket motor market, challenging traditional reliance on limited legacy suppliers.

While this agreement focuses on defense contracts, it suggests a long-term shift toward greater domestic industrial self-sufficiency. Average citizens may not see immediate changes, but these investments support the sustainment of critical national security programs.

The takeaway

This agreement represents a strategic investment in the future of U.S. defense manufacturing capabilities. By leveraging international expertise to expand local production, the companies aim to resolve supply bottlenecks for high-demand missiles.