Pentagon gives Raytheon a contract worth up to $24.4 billion for SM-6 missiles, to replenish depleted stockpiles

The U.S. Department of Defense has given Raytheon, part of the RTX group, a five-year contract worth up to $24.4 billion to produce Standard Missile-6 (SM-6) interceptor missiles for the U.S. Navy, as Al Jazeera reports.

The agreement, which also includes two additional optional years, is designed to ensure a steady supply of the SM-6 — a missile used both for offensive strikes and for missile defence — at a time when conflicts in the Middle East have severely depleted U.S. munitions stockpiles.

The contract is part of a broader push by the Trump administration to press defence contractors to increase production, following similar agreements this year, including the provisional multi-year one for AMRAAM missiles and a contract for Patriot interceptors.

Industry executives have noted, however, that Congress has not yet approved funding for these agreements, which means contractors could face delays in expanding investment until lawmakers act. RTX, for its part, says it has invested significantly in expanding its workforce and strengthening supply-chain partnerships to meet the rising demand.