The U.S. military announced on Monday that it had given RTX, a new business unit of Raytheon, a $22.9 billion contract to significantly increase the production of Tomahawk missiles.
The U.S. military is rushing to replenish its dwindling inventories of high-tech weapons.
Concerns regarding air defense and precision-guided weapon stocks have been raised by the United States’ massive arms supply to allies and use of munitions in the Iranian conflict.
Acting Secretary of the Navy Hung Cao stated in an X post, “We called on industry to rapidly scale up munitions output, and RTX is delivering.” “This landmark Tomahawk contract ensures our warfighters continue to have the lethal firepower they need.”
Raytheon stated in a different statement that the seven-year contract will enable the annual manufacturing of more than 1,000 Tomahawks. At the moment, the company only earns 60 annually.
A staple of the Navy’s surface fleet, the sea-launched Tomahawk offers long-range precision strike capability against land targets from ships and submarines.
The formal announcement strengthens a framework deal inked in February by Raytheon and the U.S. military.
President Donald Trump’s administration is negotiating multi-year agreements with the largest U.S. defense contractors, enabling the businesses to invest billions of dollars in new facilities and equipment.
Deals to increase production of Patriot and THAAD interceptor missile parts were signed by the military earlier this month.
