Lockheed Martin and Avio signed a non‑binding term sheet on Nov. 10, 2025 to support the construction of Avio USA’s first U.S. solid‑rocket‑motor (SRM) plant. The agreement gives Lockheed Martin preferred access to a portion of the facility’s production capacity, ensuring a reliable domestic supply of tactical and strategic SRMs for its missile and space programs.
The new plant will be located in Texas, a site chosen for its proximity to major defense contractors and existing aerospace infrastructure. Avio CEO Giulio Ranzo said that 80 % of a €400 million capital increase will be earmarked for the U.S. facility, translating to roughly $450 million in investment. Construction is slated to begin in the first quarter of 2026, with the plant expected to reach full production by early 2028.
In addition to Lockheed Martin, Raytheon will receive preferred access to the plant’s output, positioning the facility as a merchant supplier for multiple U.S. defense customers. The partnership is part of a broader U.S. Department of Defense effort to expand domestic SRM capacity, which has been identified as a critical gap in the national defense industrial base.
Management comments underscore the strategic importance of the deal. Lockheed Martin’s Tim Cahill said the term sheet “strengthens our commitment to a diverse, resilient supply chain for solid rocket motors—key to our 21st Century Security vision.” Avio’s Ranzo added that the U.S. facility will “bring our proven solid propulsion expertise to the United States, contributing to the innovation and development of a critical industrial supply chain.”
The agreement is expected to reduce lead times and lower costs for Lockheed Martin’s missile and space programs by securing a domestic source of SRMs. It also signals a shift toward vertical integration for Avio, which has historically supplied motors for the Vega launcher and the Ariane program. By establishing a U.S. manufacturing footprint, Avio aims to capture a larger share of the growing global demand for solid‑propulsion systems driven by rising military spending.
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