US Bets Big On Tomahawks: $22.9 Billion Deal To Make 1,000 Missiles A Year

Washington: The US military has awarded Raytheon, a unit of RTX, a $22.9 billion contract to dramatically increase production of Tomahawk cruise missiles as Washington moves to replenish stocks of high-tech weapons depleted by arms transfers to allies and its own military operations.

The seven-year deal will allow Raytheon to raise annual Tomahawk production to more than 1,000 missiles, up from the roughly 60 missiles it currently produces each year, the company said on Monday.

The move comes as the US seeks to rapidly expand its weapons manufacturing capacity amid growing concerns over dwindling inventories of air-defence systems and precision-guided munitions.

The United States has supplied significant quantities of weapons to its allies while also expending munitions during the ongoing Iran conflict, putting additional pressure on its stockpiles.

"We called on industry to rapidly scale up munitions output, and RTX is delivering," Acting Secretary of the Navy Hung Cao said in a post on X. He said the contract would help ensure US forces have the "lethal firepower" required for future operations.

Tomahawk Production To Jump More Than 16-Fold

The contract marks a major expansion of the US Tomahawk programme. Raytheon currently produces around 60 missiles annually, but the new agreement is designed to push output beyond 1,000 missiles a year.

The Tomahawk is a key component of the US Navy's long-range strike arsenal. The missile can be launched from both surface ships and submarines and is designed to deliver precision strikes against targets on land from long distances.

The latest contract formalises a framework agreement reached between the US military and Raytheon in February.

Trump Administration Pushes Defence Production

The deal is part of a broader effort by the administration of President Donald Trump to expand domestic weapons production and replenish US military inventories.

The administration has been negotiating multi-year contracts with major American defence companies, giving manufacturers greater certainty to invest in new production facilities, equipment and expanded manufacturing capacity.

The push comes amid lessons from recent conflicts, where the rapid consumption of precision weapons and air-defence interceptors has highlighted the difficulty of maintaining adequate stockpiles.

Earlier this month, the US military also signed agreements aimed at increasing production of components for Patriot and THAAD missile interceptors. The Tomahawk contract therefore represents another major step in Washington's effort to rebuild its precision-strike arsenal while significantly increasing the pace at which key missile systems can be manufactured.