Anduril enters U.S. solid rocket motor market, breaking longstanding duopoly

Defense tech company Anduril Industries announced Tuesday that it officially entered full-scale production of solid rocket motors (SRMs), becoming the third major supplier of these critical missile components in the United States. The move ends a decades-long duopoly held by L3Harris Technologies (NYSE:LHX) and Northrop Grumman (NYSE:NOC).

Amid rising global tensions including the ongoing war in Ukraine and unrest in the Middle East, military demand for munitions has surged. The U.S. defense establishment has been urgently seeking ways to expand missile production capacity, with SRMs a key bottleneck.

Anduril has launched a new manufacturing site in McHenry, Mississippi, where the workforce has grown from 40 employees in early 2024 to more than 100 today. The company says it has already test-fired more than 700 rocket motors and is targeting annual output of 6,000 tactical motors by the end of 2026.

The $75 million facility incorporates modern automation and digital technologies to accelerate production, a contrast to what Anduril describes as a stagnant legacy process. The company is also using a bladeless high-speed mixer and a proprietary aluminum-lithium fuel blend, which it claims can extend missile range by as much as 40%.

Mostly known for its AI-powered defense systems and autonomous drones, Anduril was recently tapped by the U.S. Army to design a new 4.75-inch SRM for long-range precision fires. In June, the startup secured a $2.5 billion funding round, pushing its valuation to $30.5 billion.