The Department of War has announced two new Defense Production Act investments totaling $32.7 million aimed at expanding the U.S. solid rocket motor industrial base. The funding targets critical production bottlenecks tied to rising demand for missiles and propellant-based weapons.
Why it matters
Solid rocket motors (SRMs) are the propulsion systems behind most modern missile systems. Defense officials have warned that while demand for these weapons has surged in recent years, the supplier base for the components has remained dangerously narrow. This imbalance has created production delays that could impact military readiness. By using Title III authority, the government is intervening directly to strengthen domestic munitions manufacturing and reduce supply chain risk.
What to know
The Department approved the investments on September 30, 2025, though the public announcement was delayed due to the recent government shutdown. The awards are going to two specific manufacturers: Systima Technologies Inc. in Mukilteo, Washington, and R.E. Darling Co., Inc. (REDAR) in Tucson, Arizona.
Of the total funding, $5 million is allocated to Systima Technologies, a subsidiary of Karman Space & Defense. This investment will fund a dedicated SRM nozzle production line for a major program and develop an optimized production cell for complex nozzle designs.
The remaining $27.7 million will go to REDAR to modernize and expand its capacity for manufacturing SRM case insulation materials. Internal insulation is vital for protecting motors from extreme heat and erosion, ensuring performance and reliability. Officials state this investment offers a fast route to increasing insulation capacity while improving resiliency and competition across the SRM market.
What people are saying
Defense officials are framing the move as an urgent necessity to fix fragile points in the supply chain.
“The surge in demand for propellant-based weaponry, coupled with a narrow supplier base, has created a bottleneck in SRM production,” said Under Secretary of War for Acquisition and Sustainment Michael Duffey. “With these strategic investments, we are fortifying our national security by expanding critical nodes of the SRM supply chain to accelerate munitions manufacturing.”
The Department of War emphasized that SRMs play a central role in missile systems across the force, noting that any disruption in component supply can ripple across multiple weapons programs.
What happens next
These latest awards bring the total number of recent SRM-focused DPA Title III investments to eight, with combined funding now standing at $120 million. The projects are executed under a Defense Industrial Base Consortium Other Transaction Agreement solicitation, a framework designed to move funding faster than traditional contracts.
This is part of a much larger spending picture overseen by the Manufacturing Capability Expansion and Investment Prioritization directorate. In fiscal year 2025 alone, the DPA Purchases Office made 21 investments totaling $939.7 million, with recipient cost shares reaching $88 million. Officials say future investments will continue targeting fragile points across the defense supply chain, but for now, SRM production remains one of the most urgent pressure points to address.
