Defense technology startup Anduril Industries announced on Tuesday it has become the third U.S. supplier of solid rocket motors (SRMs), breaking a decades-long duopoly held by industry giants L3Harris Technologies (NYSE:LHX) and Northrop Grumman (NYSE:NOC). The move addresses a critical bottleneck in missile production as global conflicts continue to drive up demand for munitions.
Amid rising geopolitical tensions in Ukraine and the Middle East, militaries worldwide are rushing to replenish and expand their stockpiles. Anduril’s entry into the market is set to disrupt the long-standing control of Northrop Grumman and L3Harris, who have been the sole large-scale manufacturers of SRMs in the U.S.
Anduril has opened a new, full-rate SRM manufacturing facility in McHenry, Mississippi, which it says will use automation and digital systems to streamline a production process that has seen little innovation for years. The company aims to produce 6,000 tactical motors annually by the end of 2026 and claims its custom aluminum-lithium fuel blend can improve missile range by up to 40%.
The well-funded startup, recently valued at $30.5 billion, has already test-fired over 700 motors and was recently selected by the U.S. Army to develop a new SRM for long-range precision artillery. This development introduces a dynamic new competitor into a critical segment of the defense market historically dominated by Northrop Grumman.
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