Boeing (BA) chose Anduril Industries to supply rocket motors for a new interceptor aimed at countering cruise missiles and drones, as the company competes for a U.S. Army contract and the Trump administration pushes to expand the defense supplier base and speed weapons production.
“This partnership is a major step forward in strengthening the industrial base and ensuring our warfighters receive the reliable, modern capabilities they need,” Burhan Muzaffar, Anduril’s senior vice president, said in a statement Thursday.
The Army and the Pentagon have been encouraging new entrants into the solid rocket motor market amid growing demand for air and missile defense interceptors. The field has long been dominated by Northrop Grumman (NOC) and Aerojet Rocketdyne, but Anduril and other newer players are investing to boost capacity and reduce supply-chain bottlenecks.
The Boeing-Anduril collaboration comes as the Army seeks a second interceptor for its Integrated Fires Protection Capability system, which is designed to defend fixed and semi-fixed sites against threats including cruise missiles, drones, rockets, artillery and mortars.
RTX’s (RTX) AIM-9X missile is currently slated as the first interceptor for the system, but the Army has said it is looking for alternatives that offer greater magazine depth, lower costs and rocket motors that shorten time to target.
On Dec. 5, the service awarded Boeing (BA) a contract to develop a new midrange interceptor, with plans to select companies for the prototype phase in 2026 as it works to close a cruise missile defense gap.
The partnership could also bolster Boeing’s (BA) position in the Army market, where it has faced challenges securing major new programs in recent years.
Founded in 2017 by Oculus creator Palmer Luckey, Anduril has rapidly expanded its global defense footprint. The company has recently launched operations in Japan, formed a Middle East partnership with UAE-based EDGE Group, and is competing for a £100 million contract to develop an uncrewed combat aircraft for the United Kingdom.
Anduril acquired a solid rocket motor business in 2023 and has invested more than $75 million in a production facility in McHenry, Mississippi.
Other contenders for the Army’s new interceptor include a Lockheed Martin (LMT)-Aerovironment (AVAV) team, as well as Israel’s Rafael Advanced Defense Systems working with Kratos Defense & Security Solutions (KTOS), which has announced plans to build a solid rocket motor plant on a 500-acre site in Indiana.