Lockheed Martin and Avio have signed a strategic cooperation agreement to expand solid rocket motor (SRM) production capacity in the United States, strengthening the defence supply chain and supporting higher production volumes for key missile programmes. Announced on October 13, 2026, the agreement will initially focus, following qualification, on solid rocket motors for Lockheed Martin’s Extended Range Guided Multiple Launch Rocket System (ER GMLRS) and Precision Strike Missile (PrSM). Production will take place at Avio USA’s new facility in Hurt, Virginia, drawing on the solid propulsion expertise of its parent company, Avio S.p.A.
The partnership will provide Lockheed Martin access to a share of Avio’s commercial supply capacity for the two programmes. The arrangement is intended to improve supply flexibility, reduce supply-chain constraints and help meet growing demand for precision-guided munitions.
Solid rocket motors are essential components of these missile systems. Expanding production capacity is expected to support increased manufacturing volumes and provide greater reliability in the supply of critical components required by US forces and allied customers.
Tim Cahill, president of Lockheed Martin Missiles and Fire Control, said a reliable and diversified supply chain for solid rocket motors was central to strengthening the defence industrial base. He said the agreement would help accelerate production of essential capabilities and support customers facing emerging security threats.
James Syring, CEO of Avio USA, said the Lockheed Martin programmes would provide a foundation for operations at the Virginia facility. He added that the agreement would support the company’s construction activities, workforce expansion and preparations for manufacturing.
Avio has committed more than US$500 million to expanding solid rocket motor production capacity in the United States, with the aim of becoming an independent supplier to multiple defence customers. Giulio Ranzo, CEO of Avio, said the company would use its propulsion expertise to support Lockheed Martin’s efforts to increase output and strengthen supply-chain resilience.
The agreement forms part of wider efforts to expand the US defence manufacturing base and improve the availability of critical missile components. Additional production capacity could provide greater flexibility as demand for ER GMLRS and PrSM increases.
Avio USA, headquartered in Arlington, Virginia, is a subsidiary of Avio S.p.A. and operates under US security and export-control requirements. The company is developing its domestic engineering, manufacturing and operations capabilities to serve US defence customers and industry partners.
Avio SpA has more than 50 years of experience in propulsion systems for space launch vehicles and defence programmes. The company operates in Italy, France, the United States and French Guiana, employing more than 1,500 people. Its activities include the Vega launch vehicle programme, work on Ariane and the development and manufacture of solid rocket motors for European tactical missile programmes.
Renowned for its commitment to research and development, Lockheed Martin invests significantly in emerging technologies, including artificial intelligence and hypersonics, to enhance national security and address complex global challenges. With a workforce of approximately 114,000 employees, the company emphasizes diversity, sustainability, and corporate responsibility while maintaining strong partnerships with government agencies and international allies to ensure peace and stability worldwide.
