The US War Department is seeking to strengthen its defence industrial base by combining large, multi-year contracts with established manufacturers and faster innovation from startups. Officials say the approach should expand weapons production, diversify suppliers and help the military respond more quickly to emerging threats.

Recent agreements include a $22.9 billion Raytheon contract for Tomahawk missiles, a $1 billion framework involving Northrop Grumman and Lockheed Martin for THAAD components, and a $58.62 billion Lockheed Martin contract for Patriot missile upgrades. The Department of War Innovation Unit’s budget has risen to nearly $1 billion, while Rocket Lab has received more than $2 billion in government awards and Castelion has secured $500 million in contracts alongside $1 billion in private funding.