Defense Department Signs Deals for Thousands of New Low-Cost Missiles

The Defense Department announced Wednesday it has secured framework deals with four companies that could lead to purchasing more than 10,000 affordable, containerized missiles beginning in 2027.

According to a Pentagon statement, the agreements involve Anduril, CoAspire, Leidos and Zone 5 as part of the newly launched “Low‑Cost Containerized Munitions (LCCM) program.”

The program’s assessment phase will begin in June 2026 with the Pentagon purchasing test missiles from all four contractors. While the statement did not reveal costs or specify particular weapon systems, it established terms for future fixed-price production contracts.

Military officials have long promoted containerized weapon systems as an affordable, portable method for deploying missiles using standard shipping containers.

In a separate deal, defense startup Castelion has outlined plans for a two-year contract requiring a minimum annual purchase of 500 Blackbeard missiles – the company’s inaugural hypersonic strike weapon – once testing and validation requirements are met.

The Pentagon is seeking authorization and funding to acquire more than 12,000 Blackbeard missiles across five years.

Michael Duffey, the Pentagon’s chief weapons buyer serving as under secretary of defense for acquisition and sustainment, stated the agreements demonstrate how the U.S. is expanding beyond traditional “prime” contractors to broaden the industrial base.

The deals send “a clear, long-term demand signal to innovative new entrants,” Duffey added.

Emil Michael, under secretary of defense for research and engineering, emphasized the agreements require companies to meet delivery deadlines and cost targets.

“We will deliver affordable mass for our warfighters at unprecedented speed,” Michael said in the statement.

The Pentagon has increased its congressional funding requests for munitions amid high demand due to the ongoing conflict in Iran.

General Dan Caine, chairman of the Joint Chiefs of Staff, testified this week that the Pentagon’s fiscal year 2027 budget would allocate more than $26 billion for multi-year procurement contracts for essential munitions.