To help the “urgent replenishment” of the nation’s missile supply, Raytheon has secured a five-year contract to produce Standard Missile-3 Block IB interceptors.

The $6.3 billion contract, with two additional option years, provides long-term production stability for critical missile defense capability, the defense contractor said.

“This award underscores Raytheon’s commitment to increasing production of critical munitions, ensuring our customers have the defensive capabilities they need, when they need them,” said Raytheon President Phil Jasper. “SM-3 Block IB has proven its relevance in combat and this contract helps ensure we can replenish inventories and keep pace with the evolving threats the U.S. Navy, Missile Defense Agency and their partners face around the world.”

Raytheon recently completed a $115 million expansion of its facility on Redstone Arsenal. (Photo courtesy of Raytheon)

Production will be primarily completed at Raytheon’s facilities in Huntsville and Tucson. The completion date is Oct. 31, 2034.

Raytheon has made significant investments to expand capacity and accelerate production of critical munitions, including a $115 million expansion of its Huntsville site. The 26,000 square-foot expansion of its Redstone Raytheon Missile Integration Facility will increase its integration and delivery capacity by more than 50% and grow the company’s footprint in the state to more than 2,200 employees.

“This expansion marks an important step in our ability to deliver more missiles to our customers faster, and our investment here demonstrates our commitment to making that a reality,” said Barbara Borgonovi, president of Naval Power at Raytheon. “With this significant expansion complete, we are well-positioned to help our customers stay ahead of emerging threats and strengthen the nation’s defense posture.”

Since its opening in 2012, the Redstone Raytheon facility has become a cornerstone of the company’s missile production and integration capabilities, including nine variants of the Standard Missile family and other advanced weapon systems.

The contract award, which is part of the recent landmark agreements between Raytheon and the Department of Defense, supports urgent replenishment of missile defense inventory that has been used in combat and remains central to protecting U.S. forces, allies and critical infrastructure.

SM‑3 IB is a ship‑ and land‑based missile defense interceptor designed to defeat short‑ to intermediate‑range ballistic missiles during the midcourse phase of flight.

It was first used in combat in 2024 and is an integral part of the Navy’s extended-range air and missile defense together with SM-3 IIA and the rest of the Standard Missile family.