Pentagon signs US$24.4bil deal to accelerate missile output
WASHINGTON: The Pentagon on Thursday announced the award of a US$24.4 billion contract for Raytheon to accelerate production of SM-6 missiles as Washington works to replace the large amount of munitions expended during the Iran war.
The Pentagon has awarded Raytheon a $24.4 billion contract to intensify SM-6 missile production, in response to the significant munitions consumption during the recent Iran war. Spanning five years with two optional years, this deal aims to expedite production and provide necessary predictability to the defense industry. By doing so, it enables workforce capacity expansion and ensures critical supply chains remain secure.
While President Donald Trump has not addressed the strain on US munition supplies caused by the Iran war, the Pentagon's inspector general recently revealed that Operation Epic Fury has led to strategic inventory shortages and industrial bottlenecks for munitions resupply. A report from the Congressional Budget Office further highlights the impact on missile defense supplies, which could leave the United States with a diminished inventory of interceptors for several years.
Despite Iran's continued control over the Strait of Hormuz, Washington maintains a blockade on Iran's ports. Reports suggest that Trump may resume bombing Iran by late November, potentially triggering more Iranian strikes and further US munitions expenditure.
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