“The Department of War has agreed to invest $1 billion in L3Harris Technologies’ new business to expand the production of solid rocket motors that power U.S. and allied missiles.
Under Secretary of War for Acquisition and Sustainment Michael Duffey will participate in a fireside chat at the Potomac Officers Club’s 2026 Defense R&D Summit on Jan. 29. Join Duffey and other senior defense and industry leaders as they share their insights on the latest strategies and defense innovation aimed at helping the U.S. maintain its technological edge in an increasingly contested environment. Book your spot today!
What Are the Terms of the Direct-to-Supplier Partnership Between DOW & L3Harris
L3Harris said Tuesday it will spin off its Missile Solutions business into an independent company through an initial public offering planned in the second half of 2026.
DOW’s $1 billion convertible preferred equity investment would convert into common equity following the IPO under the direct-to-supplier investment partnership with L3Harris, which will retain a controlling interest in the business.
According to DOW, the upfront investment will enable Mission Solutions to expand production of PAC-3, Terminal High Altitude Area Defense, or THAAD, Standard Missile, Tomahawk and other critical missile programs. The department said the investment will also support facility modernization efforts and strengthen industrial resilience.
The Pentagon stated that the partnership supports the department’s Acquisition Transformation Strategy and enables the two parties to negotiate multiyear procurement framework agreements for solid rocket motors.
J.P. Morgan Securities and Vinson & Elkins serve as financial adviser and legal counsel, respectively, to L3Harris in the proposed deal.
L3Harris CEO Christopher Kubasik & DOW Under Secretary Michael Duffey on the Partnership
“We’re taking action to build today’s ‘Arsenal of Freedom’ by launching a pure-play missile solutions provider,” said Christopher Kubasik, chairman and CEO of L3Harris.
“Recent Trump Administration actions have placed renewed emphasis on strengthening the defense industrial base and reinvigorating competition following a 30-year wave of consolidation. Building on several years of sustained investment and operational improvements by L3Harris, this new company will serve as a key partner to the DoW in supporting efforts to deter and defeat America’s adversaries,” added Kubasik, a three-time Wash100 awardee.
Under Secretary of War for Acquisition and Sustainment Michael Duffey said the department is shifting its approach to securing the U.S. munitions supply chain.
“By investing directly in suppliers we are building the resilient industrial base needed for the Arsenal of Freedom. This direct-to-supplier model is a crucial step toward replenishing stockpiles, rebuilding our military, and reestablishing deterrence by ensuring the availability of critical components,” added Duffey.
How Is L3Harris Expanding Solid Rocket Motor Production?
L3Harris has invested in expanding solid rocket motor production capacity following its $4.7 billion acquisition of Aerojet Rocketdyne, creating a propulsion and missile solutions business.
In August 2025, L3Harris inaugurated a solid rocket motor manufacturing facility in Huntsville, Alabama.
The company has also initiated capacity-expansion projects at its site in Camden, Arkansas, to increase production of Javelin, Stinger and Guided Multiple Launch Rocket System motors and invested in boosting solid rocket motor manufacturing in Orange County, Virginia.
