US awards Raytheon $22.9bn Tomahawk production deal as concerns mount over dwindling munitions

The United States has awarded Raytheon, a unit of RTX, a $22.9 billion contract to increase the production of Tomahawk missiles. This move comes as concerns grow over dwindling munitions stockpiles, particularly depleted by the conflict with Iran. According to Michael Duffey, Under Secretary of War for Acquisition and Sustainment, the Department of Defense had directed industry to expand munitions production, and Raytheon has responded accordingly.

The seven-year contract, awarded by the US Navy, will allow annual production to reach over 1,000 Tomahawk missiles per year, up from the previous 60. Raytheon president Phil Jasper emphasized that the Tomahawk missile is the Navy's most critical strike weapon, capable of targeting hostile forces hundreds of miles away without endangering U.S. sailors.

The agreement follows previous contracts between Raytheon and the Pentagon. The Tomahawk missile, a long-range precision-guided weapon, can be launched from ships, submarines, and ground launchers. Hung Cao, Acting Secretary of the Navy, stated that this $22.9 billion investment will accelerate the delivery of Tomahawk missiles to warfighters at an unprecedented speed.

This latest multibillion-dollar deal with Raytheon is the latest in a series of agreements the military has signed with defense contractors for new equipment. Recent estimates suggest that US Patriot missile inventories have dropped below 1,000, down from 2,330, and THAAD inventories have fallen from 452 to around 250 since the Iran conflict began in February.

In response, the Pentagon announced framework agreements with Northrop Grumman and Lockheed Martin to boost production of missile parts. These agreements aim to triple Patriot Advanced Capability-3 (PAC-3) missile production and quadruple THAAD production.