# Lockheed Martin and Avio Partner to Expand U.S. Rocket Motor Production

- URL: https://stocks.freetheai.org/news/lockheed-martin-and-avio-partner-to-expand-u-s-rocket-motor-production-644ead
- Published: 2026-10-13T18:20:31Z
- Category: company_news; sentiment: bullish; impact: medium
- Symbols: [NYSE:LMT](https://stocks.freetheai.org/symbols/NYSE-LMT), [OTC:AVVSY](https://stocks.freetheai.org/symbols/OTC-AVVSY), [OTC:AVVOF](https://stocks.freetheai.org/symbols/OTC-AVVOF)
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Lockheed Martin Corporation (NYSE:LMT) and Avio SpA (OTC:AVVSY) have signed a strategic cooperation agreement to expand solid rocket motor production in the United States. The initial phase of the agreement focuses on providing rocket motors for Lockheed Martin's Extended Range Guided Multiple Launch Rocket System and Precision Strike Missile programs. Manufacturing is set to take place at a new Avio USA facility currently under construction in Hurt, Virginia, once required qualification processes are completed.

Solid rocket motors serve as a key propulsion element in guided missiles, and existing supply bottlenecks have hindered defense contractors from scaling up production. By tapping into Avio's planned U.S. capacity, Lockheed Martin seeks to diversify its supply chain and reduce reliance on single suppliers. For Avio, which has committed more than $500 million toward building U.S. production capabilities, the partnership secures an initial customer base to support its Virginia manufacturing hub as governments work to replenish munition stocks.

Going forward, investors should watch for progress on the construction and motor qualification phases at the Hurt facility. Because neither company disclosed financial terms, contract values, or specific delivery schedules, the long-term revenue impact will depend on manufacturing timelines and future order volumes.

## Key points

- Lockheed Martin and Avio signed a strategic agreement to expand U.S. solid rocket motor manufacturing capacity.
- The partnership focuses on motors for Lockheed's ER GMLRS and Precision Strike Missile systems.
- Production will take place at Avio USA's new factory under construction in Hurt, Virginia, following qualification.
- Avio has committed over $500 million to build U.S. solid rocket motor production facilities.
- Neither company disclosed financial terms, contract values, or specific delivery schedules for the agreement.

## Questions and answers

### Why are Lockheed Martin and Avio expanding rocket motor production?

They are expanding production to increase manufacturing capacity, diversify supply chains, and meet rising defense demand for guided missiles.

### Where will the Lockheed Martin and Avio rocket motors be produced?

The rocket motors will be produced at a new Avio USA manufacturing facility under construction in Hurt, Virginia, following completion of a qualification process.

### Which missile systems are included in the Lockheed Martin and Avio agreement?

The initial collaboration focuses on rocket motors for Lockheed Martin's Extended Range Guided Multiple Launch Rocket System and Precision Strike Missile programs.