Raytheon is accelerating the production of its Standard Missile 3 (SM-3) lines in response to increased global interest in procuring the U.S. Navy’s capabilities. This surge in demand follows successful intercepts against ballistic missile attacks in the Middle East.
Raytheon produces two variants of the SM-3: the SM-3 Block IB and the advanced SM-3 Block IIA. Both models are designed to counter short- and medium-range ballistic missiles. Notably, the SM-3 demonstrated its combat capabilities in April 2024, successfully intercepting missile attacks targeting Israel from Iran.
The SM-3 Block IIA played a significant role in the Missile Defense Agency’s (MDA) initial testing of a missile defense capability on Guam. In a successful test conducted last month, an interceptor launched from a Vertical Launch System on the island intercepted a medium-range air-launched ballistic missile target.
Despite the MDA’s attempt to cease production of the SM-3 Block IB in its fiscal year 2025 budget to shift focus towards new development priorities, Congress has reinstated funding for this production line through the National Defense Authorization Act. Although appropriations for fiscal year 2025 funding are still pending approval, lawmakers are keen to maintain this capability.
In an interview with Defense News on January 13, Raytheon’s vice president of naval shipboard missiles, Misty Holmes, indicated that the SM-3 has shifted from being unproven to a combat-tested asset. She emphasized the need to address rising demand for the system to ensure replenishment after its successful deployment.
Holmes noted that Raytheon had a record year in deliveries for the SM-3 IB and that the production of the SM-3 IIA is ramping up to full-rate production following a contract award received last fall. She expressed the company’s commitment to maintaining a healthy production pipeline.
South Korea represents a notable example of an allied country interested in acquiring the missile, although it has not yet become a customer, according to Holmes.
Raytheon is collaborating closely with vendors throughout its supply chain to align investments aimed at increasing production rates, although specifics regarding output expectations remain undisclosed.
The company has invested over $115 million to achieve a nearly 67% capacity increase for final integration of the SM-3 all-up rounds at a new factory expansion in Huntsville, Alabama. This facility is strategically located near the U.S. Army’s Redstone Arsenal, where many missile-related program offices are based, and is expected to be operational by the end of 2025.
In addition to boosting production efficiency, Raytheon is also working to reduce the cost of manufacturing SM-3 missiles. Holmes highlighted the importance of affordability through collaboration with the MDA and foreign military sales customers to provide economic value. The focus is on bulk purchasing rather than smaller orders.
Looking toward the future, Raytheon plans to enhance the capabilities of the SM-3 by incorporating advanced sensing and discrimination technologies, as well as increasing the missile’s range. This will allow operators more time to make strategic decisions and enable threat engagement further from home territory.
Jen Judson, the author of the article, is an accomplished journalist specializing in land warfare coverage for Defense News, with a background in various media outlets including Politico and Inside Defense. She holds a Master’s degree in journalism from Boston University and a Bachelor’s degree from Kenyon College.