Lockheed Martin (NYSE: LMT) and Avio S.p.A. (EXM: AVIO) have signed a strategic cooperation agreement to produce solid rocket motors (SRMs) for two U.S. defense programs, according to a press release issued by the companies.

After qualification, production will focus on SRMs for the Extended Range GMLRS (ER GMLRS) and the Precision Strike Missile (PrSM). Manufacturing will take place at Avio USA's facility under construction in Hurt, Virginia.

The agreement gives Lockheed Martin access to a share of Avio's merchant supply capacity for those two programs. Avio has stated it is investing over $500 million in new SRM production capacity in the United States.

Tim Cahill, president of Lockheed Martin Missiles and Fire Control, said the agreement "enables us to speed up production of essential capabilities." James Syring, CEO of Avio USA, called it "a major milestone" that "gives us tremendous momentum as we continue construction, grow our U.S. workforce and prepare to begin manufacturing."

Avio CEO Giulio Ranzo said the company aims to become "a merchant supplier to the various defense customers" in the United States through the investment.

Avio USA is a subsidiary of Avio S.p.A. and is headquartered in Arlington, Virginia. The Virginia facility was announced separately in September 2026 and is projected to create over 1,000 jobs.