The US military has awarded Raytheon, a unit of RTX, a $22.9 billion seven-year contract to significantly increase production of Tomahawk cruise missiles as Washington moves to replenish depleted stocks of advanced weaponry.
The deal is aimed at expanding annual Tomahawk production to more than 1,000 missiles, up from the roughly 60 missiles the company currently produces each year.
The US has supplied large quantities of weapons to allies while also using significant amounts of munitions in the conflict with Iran, raising concerns over its inventories of air defence systems and precision-guided weapons.
Acting Secretary of the Navy Hung Cao said the contract would help ensure US forces have sufficient firepower.
“We called on industry to rapidly scale up munitions output, and RTX is delivering,” Cao said in a post on X. “This landmark Tomahawk contract ensures our warfighters continue to have the lethal firepower they need.”
Raytheon said the seven-year agreement would provide the certainty needed to substantially increase production capacity and invest in the facilities and equipment required to meet the higher output.
The sea-launched Tomahawk is a key weapon in the US Navy’s arsenal, providing long-range precision strike capabilities against land targets from surface ships and submarines.
Monday’s contract formalises a framework agreement signed by the US military and Raytheon in February.
The administration of President Donald Trump has been pursuing multi-year procurement agreements with major US defence contractors, giving companies greater confidence to invest billions of dollars in expanded manufacturing capacity.
Earlier this month, the US military also signed agreements aimed at increasing production of components for Patriot and THAAD missile interceptors, as Washington seeks to strengthen its weapons stockpiles.
Boluwatife Enome
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