Pentagon to invest $1B in L3Harris spinoff rocket motor firm

Defense News • January 13, 2026 • business

Key Points:

The Defense Department is investing $1 billion in L3Harris Technologies’ solid rocket motor production through a first-of-its-kind deal that includes spinning off L3Harris’ Missile Solutions business into a separate company.
This investment aims to expand production capacity for critical missile programs like the Army’s PAC-3 and THAAD, as well as the Navy’s Tomahawk and Standard Missile, while modernizing facilities and improving industrial resilience.
The Pentagon’s direct-to-supplier partnership reflects a new acquisition strategy focused on building a resilient industrial base by investing directly in critical suppliers to speed up production and ensure supply chain stability.
L3Harris will maintain controlling interest in the spun-off company, with the Pentagon as the anchor investor;