Pentagon Expands Low-Cost Missile Push

Flight test of the Blackbeard long-range, hypersonic strike weapon on October 5th, 2025 near Mojave, CA | Photo: Castelion

The United States Department of War has signed framework agreements with several defense and technology companies to expand production of low-cost strike weapons under two new initiatives aimed at increasing missile inventories and accelerating procurement timelines.

The agreements involve Anduril Industries, CoAspire, Leidos, and Zone 5 Technologies under the Low-Cost Containerized Missiles (LCCM) program. A separate agreement with Castelion covers development of low-cost hypersonic missiles.

According to the Pentagon, the LCCM program will support experimentation and testing leading to a Military Utility Assessment by sponsoring military service components. The agreements are intended to establish terms for future fixed-price production contracts and could support procurement of more than 10,000 cruise missiles between 2027 and 2029.

The department said the agreements include fixed material-unit costs for planned production lots over the three-year period. Officials stated that the initiative is intended to create a repeatable production process for high-volume strike systems.

Under the separate hypersonic effort, Castelion could receive a two-year procurement contract for at least 500 Blackbeard missiles annually after testing and validation are completed. The department also said it is seeking authorization and funding to procure more than 12,000 Blackbeard missiles over five years.

The Office of the Under Secretary of War for Research and Engineering will oversee the LCCM experimentation and assessment campaign. The Army Program Executive Office for Fires will act as acquisition lead for procurement activities.

The department said test missiles from all four LCCM companies will begin procurement in June 2026 to support the assessment phase. The effort was coordinated with the United States Air Force Program Executive Office for Weapons, the Test Resource Management Center, and the Office of the Under Secretary of War for Acquisition and Sustainment.

“In concert with establishing a clear demand signal, these Framework Agreements commit American industry to on-time, on-cost delivery and investment in R&D and facilities,” said Under Secretary of War for Research and Engineering Emil Michael.

“Today’s announcement is the latest sign that our Acquisition Transformation Strategy is delivering on its promise to rebuild the Arsenal of Freedom,” said Michael Duffey, Under Secretary of War for Acquisition and Sustainment.