Department of War Announces $1 Billion Direct-to-Supplier Investment to Secure the U.S. Solid Rocket Motor Supply Chain

View Online IMMEDIATE RELEASE Department of War Announces $1 Billion Direct-to-Supplier Investment to Secure the U.S. Solid Rocket Motor Supply Chain Jan. 13, 2026 The Department of War (DoW), working in partnership with L3Harris Technologies, today announced the signing of a letter of intent outlining agreed-upon investment terms pivotal to expanding the production capacity of U.S. solid rocket motors. The announcement marks the first direct-to-supplier partnership of this kind, with the DoW committing to a $1 billion convertible preferred equity investment in L3Harris' Missile Solutions business, which will become a separate company as part of this transaction.  This partnership positions the DoW and L3Harris to negotiate multi-year procurement framework agreements for solid rocket motors, vital to several critical munitions, pending Congressional authorization and appropriations. An Initial Public Offering (IPO) is planned in the second half of 2026, providing the US government the opportunity to benefit on this unique investment framework. This investment will expand production capacity of a critical node to national security and the munitions industrial base. The terms of the agreement scale up the domestic supply chain for solid rocket motors by providing the upfront investment and stability needed to increase production, modernize facilities, and bolster industrial resilience. This is a direct outcome of the Department's new Acquisition Transformation Strategy and its "Go Direct-to-Supplier" initiative. The strategy calls for the Department to negotiate and invest directly with critical suppliers to save money and time, while proactively managing the single points of failure. Under the framework of this unique strategic investment model, the Department of War will make a $1 billion convertible preferred equity investment as the anchor investor in L3Harris' new Missile Solutions company. The terms of the agreement establish the basis for the creation of the new, publicly traded company focused purely on missile solutions. This direct investment from the Industrial Base Analysis and Sustainment (IBAS) authority resources solid rocket motor production, a critical node in the munitions supply chain.  Since its acquisition of Aerojet Rocketdyne, now Missile Solutions, L3Harris has significantly increased solid rocket motor capacity. The investment from the DoW, along with sustained, long-term demand, will support Missile Solutions' rapid expansion of capacity for the DoW's critical missile programs, such as PAC-3, THAAD, Tomahawk, and Standard Missile. "We are fundamentally shifting our approach to securing our munitions supply chain," said Michael Duffey, Under Secretary of War for Acquisition and Sustainment. "By investing directly in suppliers we are building the resilient industrial base needed for the Arsenal of Freedom. This direct-to-supplier model is a crucial step toward replenishing stockpiles, rebuilding our military, and reestablishing deterrence by ensuring the availability of critical components." This partnership with L3Harris marks another critical achievement for the Department's Munitions Acceleration Council, which was established to rapidly identify and remove structural barriers, like supply chain vulnerabilities, to scaling weapons production and to translate urgent operational demand into executable, long-term industrial capacity. Collaboration between a number of DoW components continue to drive forward and advise unique investment approaches to strengthen our industrial base, including the Office of the Under Secretary of War for Acquisition and Sustainment, the Economic Defense Unit, the Office of Strategic Capital, and the Military Departments.

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