
Raytheon has invested in increasing production of the U.S. Navy weapon, following successful responses to ballistic missile attacks in the Middle East, amid growing global interest in this capability. The company is producing more advanced versions of the SM-3 Missile System, the SM-3 Block IB and SM-3 Block IIA. The SM-3 was combat-proven against an Iranian missile attack on Israel in April 2024. This was a significant achievement that demonstrated the effectiveness and reliability of Raytheon’s missile defense capabilities.
Global Role and Test Successes of SM-3 Block IIA
Raytheon’s SM-3 Block IIA also achieved significant success at a Missile Defense Agency test facility on the Pacific island of Guam. In the test, the SM-3 Block IIA fired from the island’s Vertical Launch System successfully eliminated a medium-range, air-launched ballistic missile threat. This test further demonstrated the missile’s defensive capability and effectiveness.
Congressional SM-3 Block IB and IIA Investment Decisions
While the Missile Defense Agency intended to end SM-2025 Block IB production in its fiscal year 3 budget request, Congress sought to ensure the continuation of this project by restoring funding under the National Defense Authorization Act. These funds are reportedly aimed at sustaining SM-3 Block IB production and meeting future demand increases.
Raytheon's Production Growth and Cost Reduction Strategy
Raytheon said it is working closely with suppliers across its supply chain to increase SM-3 production rates and meet demand. The company is investing $67 million at its expanded Huntsville, Alabama, factory to provide a 115% capacity increase for the eventual integration of all Standard Missile rounds. The factory is expected to be completed by the end of 2025.
In addition to increasing production rates, Raytheon is also working to reduce the cost of manufacturing the SM-3. The company aims to develop strategies with the Missile Defense Agency (MDDA) and allied nations to provide affordable and economic value, particularly through foreign military sales (FMS).
Upcoming Upgrades and Ability Increases
Raytheon is also focused on future developments for the SM-3 system. The company is working on capability upgrades such as enhanced detection and discrimination technologies as well as increased range. These advances will allow operators to identify and intervene in threats from greater distances, giving them more time to make decisions. Raytheon emphasized that these technologies are critical to effectively intercepting threats from the farthest distances.
Raytheon is taking a significant step toward meeting the missile defense needs of both the United States and its global allies by expanding its SM-3 Missile System production capacity. The company is focusing on reducing costs and making its products more efficient with new technologies while accelerating production processes to meet greater demand in the global market. These strategies are considered a significant step toward making Raytheon a leader in missile defense systems worldwide.