Pentagon awards Raytheon $20.7bn contract to supply AMRAAM missiles

As part of efforts to replenish US military weapon stockpiles depleted by conflicts in the Middle East and Ukraine, the US Department of Defense has awarded Raytheon, a subsidiary of RTX and the missile's manufacturer, a provisional multi-year contract worth $20.7 billion to accelerate production of AMRAAM missiles.

The AMRAAM missile is used in air-to-air combat between fighter jets and forms part of the advanced NASAMS air defense system, which the United States and its allies rely on for air defense missions. More than 40 countries, allies, and partners use the missile across various platforms.

The US has supplied large quantities of weapons to its allies and has used munitions in military operations against Iran, raising concerns about key stockpiles of air defense and precision-guided weapons.

According to Asharq, the AMRAAM deal is the latest in a series of major munitions contracts the Pentagon has pursued this year to pressure contractors to increase production at a faster pace.

The contract follows a similar pattern to the $58.6 billion Patriot interceptor missile deal awarded to Lockheed Martin in July, a seven-year procurement plan running through fiscal year 2032.

These production deals aim to encourage contractors to move more quickly to ramp up output, as part of a broader effort by the administration of US President Donald Trump to prioritize weapons production over shareholder returns.

If Congress ultimately approves the funding, the contract will allow RTX to continue investing in its workforce, supply chain, and facilities as US demand rises.

The company said it will nearly double AMRAAM missile production in 2025 compared to the previous year. The deal will be part of the Pentagon's "Arsenal of Freedom" initiative. RTX previously announced this year it would set an annual production target of no less than 1,900 AMRAAM missiles.