The Pentagon announced on Thursday that it had awarded Raytheon, the U.S. defense contractor, a $24.4 billion contract to accelerate production of SM-6 interceptors in an effort to replenish U.S. military ammunition stocks depleted during the war with Iran.
Expanding production and supply chains
The Pentagon said SM-6 missiles are “critical air- and surface-target munitions,” explaining that the agreement runs for 5 years, with the option of extending it for 2 additional years, and aims to accelerate the production pace.
It added that the deal gives defense manufacturers greater capacity for long-term planning, supporting workforce expansion and the securing of critical supply chains.
Industry executives said Congress has yet to allocate the funding needed for the deals, which could delay contractors’ ability to make large-scale investments in components and facilities until lawmakers take the necessary action.
RTX said it had invested heavily to keep pace with rising demand by expanding its skilled workforce and strengthening partnerships across the defense industrial base, with the goal of increasing production to meet near- and long-term needs.
Raytheon says the SM-6 is the only weapon proven capable of carrying out air-warfare missions, striking surface targets and defending against ballistic missiles, noting that it can be launched from Navy ships and ground-based platforms.
Pressure on ammunition stocks
U.S. President Donald Trump said in an interview published Thursday that “some types of ammunition are a little lower than other types,” but he said overall weapons stocks were “in excellent shape” because the United States “had been stockpiling them over the past six months.”
Trump acknowledged in August that stocks of some supplies were “a little thin.” In September, a Pentagon report warned that the U.S. war with Iran had caused a serious “shortage” of ammunition and bottlenecks in resupply operations, but Trump rejected its findings as “fake news.”
A report issued by the Congressional Budget Office on September 15 said missile-defense supplies had been damaged in a way that could “leave the United States with a small stockpile of interceptors for several years.”
Tensions with Iran and demand for missiles
More than 7 months into the U.S.-Israeli war with Iran, Tehran continues to disrupt shipping in the strategic Strait of Hormuz, while Washington is imposing a blockade on Iranian ports.
A media report said Trump had told his aides that he expected bombing of Iran to resume by late November, a move that could trigger Iranian military responses and further consumption of U.S. ammunition and weapons.
