Anduril has officially launched its high-volume solid rocket motor (SRM) factory in Mississippi, positioning itself to meet the growing demand for space and defense missions while challenging the long-standing duopoly held by two major defense contractors. The Mississippi facility is expected to produce 6,000 tactical motors annually by the end of 2026, establishing Anduril as the third major SRM supplier in the United States. Over 700 motors have already undergone successful static test firings. These motors are critical for a variety of applications, including missile interceptors and deep-space probes.
The demand for weapons has surged following Russia’s invasion of Ukraine and rising tensions in the South China Sea, prompting a wave of startups to enter the SRM market. The Defense Department has allocated millions in funding to companies like Ursa Major and X-Bow Systems to accelerate the transition from prototypes to full-scale production. However, as more manufacturers come online, a critical bottleneck in the supply chain has become evident: the reliance on ammonium perchlorate (AP), a key oxidizer produced at scale by only one qualified supplier, American Pacific (AMPAC) in Utah.
Northrop Grumman, a major weapons manufacturer, has invested over $100 million to establish its own AP production line. However, scaling production has been slow due to stringent military certification requirements. The AP supply chain remains a vulnerability, with risks such as accidents or fires threatening production capacity. Anduril has emphasized the need for additional suppliers to mitigate these risks and ensure a stable supply.
The issue of single-source dependency is not new. In the 1990s, declining demand for SRMs led the Pentagon to consolidate suppliers, resulting in a monopoly-like structure. Today, the resurgence in demand has exposed the fragility of this setup. Jerry McGinn, a former Department of Defense official, noted that the challenge is not production capacity but rather consistent demand signals and lead times to justify investment.
AMPAC announced a $100 million investment in April to expand its AP production capacity by 50%, with completion targeted for next year. However, meeting this deadline remains uncertain. Pentagon acquisition chief Bill LaPlante has warned against inconsistent procurement practices, stressing the need for long-term demand commitments to encourage industry investment.
Ursa Major has explored additive manufacturing to streamline production, but even advanced manufacturing methods still require AP. McGinn argues that if the government can support SRM prototyping, it should also invest in developing alternative AP suppliers to reduce reliance on a single source.
The push for SRM manufacturing is part of a broader effort to strengthen the defense industrial base. As competition grows, addressing supply chain vulnerabilities will be crucial to maintaining national security and technological leadership.