Startup Anduril becomes third U.S. SRM supplier amid rising defense demand

(Reuters) -Defense technology startup Anduril Industries said on Tuesday it has become the third supplier of solid rocket motors (SRMs) to the United States, breaking a decades-long duopoly and addressing a critical bottleneck in missile production as global conflicts drive up demand.

Rising geopolitical tensions — including the Russia-Ukraine war and ongoing conflicts in the Middle East — have fueled a global surge in demand for munitions, prompting militaries to replenish and expand their stockpiles. Until now, only L3Harris Technologies and Northrop Grumman have manufactured SRMs at scale in the U.S.

Anduril said it has opened a full-rate SRM manufacturing facility in McHenry, Mississippi, which now employs more than 100 workers, up from 40 in early 2024. The company has already test-fired over 700 motors and aims to produce 6,000 tactical motors annually by the end of 2026.

The $75 million site incorporates automation and digital systems to streamline rocket motor production, a process the company says has seen minimal innovation over the years.

The company is using a bladeless high-speed mixer and a custom aluminum-lithium fuel blend, it claims can improve missile range by up to 40%.

Anduril, best known for its autonomous drones and AI-driven defense systems, was recently selected by the U.S. Army to develop a new 4.75-inch SRM for long-range precision artillery.

In June, Anduril had raised $2.5 billion, giving it a valuation of $30.5 billion.

(Reporting by Mike Stone in Washington and Anshuman Tripathy in Bengaluru; Editing by Tasim Zahid )

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