A major $1 billion investment by the Department of War into L3Harris Technologies’ missile business is expected to strengthen the nation’s solid rocket motor supply chain and could have significant implications for Huntsville, where the company already maintains a substantial manufacturing presence.
The Department of War announced Tuesday it has signed a letter of intent outlining a direct-to-supplier partnership with L3Harris, committing to a $1 billion convertible preferred equity investment in the company’s Missile Solutions business.
The division, which includes the former Aerojet Rocketdyne operations, is expected to become a separate, publicly traded company following an initial public offering planned for the second half of 2026, pending congressional authorization and appropriations.
While the agreement does not specify where expanded production capacity will be located, Huntsville is already a key part of L3Harris’ missile manufacturing footprint. The company employs more than 700 people across its Huntsville operations, which produce critical inert components used in missile defense systems.
An L3Harris spokesperson in Huntsville said in a statement to 256 Today that the company’s local operations are central to its efforts to expand solid rocket motor production and meet growing national defense demands.
“Our sites in Huntsville are a vital part of the mission to increase solid rocket motor (SRM) capacity and support the Department of War’s ability to deliver missile propulsion at the speed and scale our nation demands. We’re investing billions in our solid rocket motor production sites in Alabama, Virginia and Arkansas, building and upgrading ~60 facilities (including our AMF-South facility in Huntsville and our new Arkansas Advanced Propulsion Facilities in Camden, Arkansas) to increase and modernize SRM production, and we’re investing heavily in our sub-tier suppliers as well.”
“Over the past five years, we’ve seen ~60% employee growth in Huntsville. In fact, since our Advanced Manufacturing Facility-South showcase event in August, our overall HSV workforce has grown 15% and we are continuing to hire as we modernize and grow.”
In August 2025, L3Harris opened a new advanced manufacturing facility in Huntsville known as AMF-South. The facility, spanning more than six football fields, initially added about 40 jobs and is designed to support future growth, with plans to add more than 100 additional positions in the coming years.
The site complements the company’s existing 136,000-square-foot Advanced Manufacturing Facility–North, which opened in 2019.
According to an L3Harris press release announcing the new facility, AMF-South was built to support surging production demands and emerging missile defense requirements.
The company has said the Huntsville facilities are equipped to manufacture key components for missile programs such as Standard Missile and Javelin, positioning the region to potentially support future production increases tied to national defense priorities.
L3Harris officially completed its acquisition of Aerojet Rocketdyne on July 28, 2023, after announcing the deal in December 2022.
The acquisition consolidated solid rocket motor production under L3Harris’ Missile Solutions business, which operates across multiple U.S. locations, including major facilities in Camden, Arkansas and Orange County, Virginia, in addition to Huntsville.
In its announcement, the Department of War said the investment is intended to rapidly expand domestic production capacity for solid rocket motors, modernize facilities and stabilize a supply chain considered critical to national security.
The agreement is part of the department’s new “Go Direct-to-Supplier” initiative under its Acquisition Transformation Strategy, which aims to reduce bottlenecks by investing directly in key industrial suppliers.
“This direct investment model is a crucial step toward replenishing stockpiles, rebuilding our military, and reestablishing deterrence by ensuring the availability of critical components,” said Under Secretary of War for Acquisition and Sustainment Michael Duffey in the department’s release.
According to Breaking Defense, the agreement allows the Department of War to take a direct ownership stake in L3Harris’ Missile Solutions business, marking the Pentagon’s first use of its direct-to-supplier equity investment model.
During a roundtable with reporters, Duffey said the equity position allows taxpayers to share in the future success of the business rather than relying solely on traditional procurement contracts.
L3Harris CEO Chris Kubasik told Breaking Defense the federal government will not hold board seats or play a role in managing the spun-off company, describing the investment as “purely an economic” stake. Kubasik said L3Harris will remain the majority shareholder after the IPO.
Breaking Defense also reported the investment comes amid ongoing strain on the solid rocket motor supply chain, which has struggled to keep pace with rising demand following Russia’s 2022 invasion of Ukraine.
For Huntsville, the agreement highlights the city’s established role in missile defense manufacturing and positions it among the locations that could support future capacity growth as L3Harris expands production under the Pentagon-backed initiative.
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