US Awards $22.9 Billion Tomahawk Deal

The US has awarded Raytheon a $22.9 billion seven-year contract to significantly increase Tomahawk missile production. The deal aims to boost annual output from the current 60 missiles per year to over 1,000.

The contract follows a preliminary framework agreement reached by Raytheon and the US military in February. Acting Secretary of the Navy Hung Cao stated that the contract will ensure warfighters have the lethal firepower they need.

The Tomahawk missile is a subsonic cruise missile with a standard range of roughly 1,000 miles. It is launched from ships and submarines and serves as a vital component of the Navy's surface fleet, delivering long-range precision strikes against targets on land.

The US military has been supplying substantial military aid to allies and expending munitions during the conflict with Iran, leading to concerns over shrinking stockpiles of advanced weapons. This contract is part of the US military's effort to replenish these stockpiles.

## Why it matters The deal is significant as it aims to address the US military's concerns over its dwindling stockpiles of advanced weapons. The increased production of Tomahawk missiles will provide the US military with a significant boost in its firepower capabilities. The contract also highlights the US military's efforts to invest in its defense capabilities, with the administration arranging multi-year agreements to encourage major domestic defense contractors to invest in expanded equipment and new infrastructure.

## What happens next The seven-year contract will see Raytheon increase its annual Tomahawk missile production to over 1,000 missiles. The US military will also continue to work with other defense contractors to accelerate the manufacturing of other critical munitions, including parts for Patriot and THAAD interceptor missiles. The increased production of these missiles will help the US military to replenish its stockpiles and maintain its defense capabilities.