Lockheed Martin and General Dynamics Partner to Meet Growing Demand for Missile Propulsion Systems Amid Global Conflicts

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Lockheed Martin announced that it has entered into a significant agreement with General Dynamics to collaborate on the production of solid rocket motors, which are crucial components in missile propulsion systems. This partnership comes at a time when global demand for missiles is surging, driven by ongoing conflicts in Ukraine and the Middle East, as well as efforts to replenish U.S. military stockpiles.

The growing demand for missiles has put pressure on the production of solid rocket motors, which are essential for the successful operation of various missile systems. A shortage of these motors could potentially slow down production, making this partnership between Lockheed Martin and General Dynamics both timely and critical for maintaining supply levels.

Beginning in 2025, General Dynamics (GD.N) will start manufacturing solid rocket motors for the Guided Multiple Launch Rocket System (GMLRS) at its facility in Camden, Arkansas. The GMLRS is a key asset in the U.S. military’s arsenal, known for its precision and effectiveness in targeting. Lockheed Martin (LMT.N), the company responsible for building the GMLRS, plans to increase its deliveries from 10,000 units in 2024 to 14,000 units in 2025 to meet the escalating demand.

Solid rocket motors, which are relatively inexpensive and highly sought after, have traditionally been supplied by Northrop Grumman (NOC.N) and L3Harris Technologies (LHX.N). However, the Pentagon has been looking to diversify its supplier base, leading to increased interest in newer players like startup rocket maker Ursa Major. This move is part of a broader strategy to ensure a steady supply of these critical components by expanding beyond the two dominant suppliers in the market.

The collaboration between Lockheed Martin and General Dynamics is expected to play a vital role in addressing the current supply challenges while supporting the U.S. and its allies in maintaining robust defense capabilities. As the global landscape continues to evolve, this partnership underscores the importance of bolstering production capabilities to meet the rising demand for advanced missile systems.