Pentagon strikes agreements with defense firms on containerized missiles
- By Reuters -
- May 14, 2026
The Pentagon is set to announce on Wednesday framework agreements that position it to potentially acquire over 10,000 low-cost, containerized missiles over three years starting in 2027.
A statement seen by Reuters ahead of its release said that the Pentagon’s agreements are with Anduril, CoAspire, Leidos and Zone 5, and will together launch the “Low‑Cost Containerized Munitions (LCCM) program.”
The assessment phase of the program will involve purchasing test missiles from all four companies starting in June 2026. The statement did not provide a cost or specify the weapons systems from the four firms, but said the agreements established the terms for future firm-fixed-price production contracts.
The Army has long touted containerized weapons systems as a low-cost, mobile way to deploy missiles in standard shipping containers.
A separate agreement with defense startup Castelion lays out a plan to award a two-year contract for a minimum annual purchase of 500 Blackbeard missiles, which are Castelion’s first hypersonic strike weapon, once Castelion achieves testing and validation, the statement said.
It said the Pentagon was seeking authorizations and appropriations to purchase over 12,000 Blackbeard missiles over five years.
Michael Duffey, who as under secretary of defense for acquisition and sustainment is the Pentagon’s chief weapons buyer, said in the statement that the agreements show how the U.S. is moving beyond traditional “prime” contractors to expand the industrial base.
The agreements, he added, send “a clear, long-term demand signal to innovative new entrants.”
Emil Michael, under secretary of defense for research and engineering, said the agreements commit the firms to on-time, on-cost delivery.
“We will deliver affordable mass for our warfighters at unprecedented speed,” Michael said in the statement.
The Pentagon is ramping up its requests from Congress for funding for munitions, which are in high demand with the ongoing war in Iran.
General Dan Caine, chairman of the Joint Chiefs of Staff, said in written testimony this week that the Pentagon’s fiscal year 2027 budget would fund over $26 billion for multi-year procurement contracts for critical munitions.