United States focuses on mass production of affordable cruise missiles

LDOS

Published on 05/15/2026 at 05:01 am EDT

Copyright © BusinessAMBE 2023

Key takeaways

To bolster its arsenal for potential high-intensity conflicts, the Pentagon is embracing a strategy of mass production for affordable offensive weapons. This shift away from expensive precision munitions has led the Department of Defense to launch the Low Cost Containerization Munitions Program. Framework agreements have been concluded with companies such as Anduril Industries, Leidos, CoAspire and Zone 5 Technologies, paving the way for the purchase of more than 10,000 low-cost cruise missiles from 2027 onwards.

Streamlining procurement

The programme aims to streamline the procurement process by setting price structures and production expectations years before full-scale production. This commercial approach is intended to encourage companies to invest in their own facilities and research programmes, ultimately speeding up production timelines and reducing potential delays linked to traditional tendering methods.

Anduril Industries plans to deliver at least 1,000 Barracuda-500M missiles per year over a three-year period starting in 2027. Leidos, meanwhile, will use its AGM-190A Small Cruise Missile programme to develop a larger missile variant that is nearly twice the size of the original system.

Hypersonic weapons

In addition to cruise missiles, the Pentagon is also investing in hypersonic weapons. A separate agreement with Castelion outlines a future contract for at least 500 Blackbeard hypersonic attack weapons over a two-year period, with the option for additional purchases. This arrangement reflects the Pentagon’s growing confidence in venture capital-backed defence start-ups such as Castelion, which are increasingly competing with established military contractors for major weapons programmes.

The Department of Defense’s focus on affordable long-range weapons underscores the recognition that it must be able to sustain combat operations against heavily armed adversaries in protracted conflicts. These agreements are expected to trigger a domino effect, shaping future procurement strategies across various branches of the US military.

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