The Pentagon Awards Raytheon a $23 Billion Contract for Tomahawk Missile Production

The U.S. Department of Defense (Pentagon) has signed a contract worth $22.9 billion with Raytheon to accelerate the production of Tomahawk missiles, which represent one of the main long-range strike capabilities of the United States.

The United States is sending large shipments of weapons to its allies and is using munitions in the war with Iran, raising concerns about air defense stocks and precision-guided munitions.

The Acting U.S. Secretary of the Navy, Hong Kao, wrote on the platform "X": "We have asked the industrial sector to rapidly increase the pace of munitions production, and RTX is meeting (this). This historic contract for the production of Tomahawk missiles ensures that our armed forces continue to possess the lethal firepower they need."

Raytheon announced the signing of a new contract with the U.S. Missile Defense Agency (MDA) to support the production and maintenance of SM-3 Block IIA interceptors as part of the company's investments.

The department stated that the contract aims to accelerate the provision of necessary capabilities to address modern threats while also providing companies with stability that allows them to expand their workforce, increase manufacturing rates, and enhance supply chains.

It also aims to accelerate the delivery of vital weapons and reduce the time required for procurement, according to the Pentagon.

Kao added that the ministry is working with the industrial sector to increase the capacity of the munitions industrial base to meet current operational requirements and ensure that forces are "prepared to fight and win, and return home safely."

The ministry stated that the contract is part of broader efforts to increase munitions production and naval strike capabilities, enhance the weapons industrial base, and accelerate production to ensure the fleet is supplied with the necessary munitions to carry out its operations.

In a separate statement, Raytheon clarified that the contract duration is up to 7 years, allowing for an increase in annual production of Tomahawk missiles to more than 1,000 missiles.

The company currently produces only 60 missiles annually.

The Tomahawk missile, launched from the sea, is a cornerstone of the U.S. Navy fleet, enabling the capability to conduct precise long-range strikes against land targets from ships and submarines.

This official announcement reinforces a framework agreement signed by the U.S. Army and Raytheon last February.

The administration of U.S. President Donald Trump is seeking to finalize multi-year contracts with the largest American defense contractors, which gives these companies the confidence to invest billions of dollars in new facilities and equipment.

Earlier this month, the Army signed agreements to increase the production of components for the Patriot and THAAD missile defense systems.

Last week, the conservative American Enterprise Institute released a report addressing the U.S. Army's efforts to increase the production of vital munitions.

The report concluded that the Pentagon's plans rely, in some cases, on fundamental assumptions, including achieving a significant increase in defense industry production.

The report pointed out, for example, that replacing the interceptors of the THAAD high-altitude air defense system, which were used during the war, could take years, and these missiles are used to intercept ballistic missiles.

The Washington Post had previously reported that U.S. forces used hundreds of them during the war.

The maximum production capacity of the U.S. Missile Defense Agency currently stands at 96 missiles per year, while the Pentagon is requesting 857 missiles in the defense budget for the next year, and about 2,600 missiles in total over the next five years.

Warnings about the depletion of U.S. missile stockpiles during the war with Iran amid concerns that Washington may be unable to engage in a broader conflict, especially with China, due to the slow pace of re-production.

The American Enterprise Institute concluded that producing 2,600 missiles at the current rate of 96 missiles per year would take about 27 years, meaning that meeting the Pentagon's demand over the next 5 years requires a significant increase in current production capacity.

The Washington Post reported that Trump confronted Defense Secretary Pete Hegseth regarding the status of the U.S. weapons stockpile on July 31, during a Cabinet meeting at Camp David.

The total defense budget requested by the Trump administration for the next fiscal year reached a record $1.5 trillion, including tens of billions of dollars for missile production, but the proposal stalled due to Democratic objections to this massive increase, leaving the Pentagon without a clear plan to renew its arsenal of vital weapons.