Anduril Opens Solid Rocket Motor Production Facility Amid Continued Chemical Supply Issues

Anduril has launched its high-volume solid rocket motor (SRM) factory in Mississippi, aiming to fulfill the increasing demands of the United States for space and defense initiatives while disrupting the established duopoly of two major defense contractors.

By the end of 2026, the facility in Mississippi is expected to manufacture 6,000 tactical motors per year, positioning Anduril as the “third” SRM supplier in the U.S. More than 700 motors have already undergone successful static test firings. These motors are essential for various kinetic weapons, encompassing missile interceptors and deep-space probes.

In light of the heightened demand for arms resulting from the Russian invasion of Ukraine and escalating tensions in the South China Sea, numerous innovative startups are coming to the forefront. The Defense Department is keen to bolster American military stockpiles, providing significant funding to new entrants like Ursa Major and X-Bow Systems to advance their products from prototypes to full-scale production.

As the number of SRM manufacturers increases, the weaknesses in another segment of the supply chain become more apparent.

Each motor produced relies on ammonium perchlorate (AP), a crucial oxidizer available at scale from only one certified manufacturer: American Pacific, or AMPAC, located in Utah.

Northrop Grumman, a manufacturer of SRM-utilizing weapons, has invested over $100 million to establish an AP production line, but expansion has been slow due to stringent military certification protocols, according to The Wall Street Journal. Northrop did not respond to TechCrunch’s inquiries.

The AP supply chain is a critical vulnerability for suppliers, including Anduril. While dangers like accidents and fires loom over critical assets, the company emphasizes that it is vital to have a second supplier and is open to additional sources.

This problem is not new, but as the SRM duopoly held by Northrop Grumman and L3Harris’ Aerojet Rocketdyne faces intensified competition from Anduril and others, it highlights a vulnerability in the supply chain.

Jerry McGinn, a former senior official in the Department of Defense’s industrial base, remarked that the need for multiple AP suppliers diminished as SRM demand dropped in the 1990s. During that period, the Pentagon favored a “merger-to-monopoly” strategy, opting for a stable single provider rather than two noncompetitive firms reliant on government subsidies.

McGinn argues that today’s single-source risk is less about capacity and more about the resurgence in demand signals. “Capacity is rarely the issue,” he stated. “It’s simply a matter of having adequate orders and lead time for fuel production.”

AMPAC announced in April that its parent company plans to invest $100 million in a new AP production line, expected to increase capacity by 50%. This line is scheduled to be completed next year, a timeline that is tight even under optimal conditions. AMPAC did not respond to TechCrunch regarding the current status of the new line.

Balancing demand with lead time is a complex issue.

Pentagon acquisition chief Bill LaPlante referred to this as “the tyranny of lead time” during discussions with lawmakers in February, warning against past “feast-or-famine” procurement practices.

“The industry understandably hesitates to build extra capacity ‘at risk’ until there’s a solid, consistent demand signal from the DoD, typically accompanied by specifics on procurement quantities for multiple years,” he explained.

Ursa Major has indicated that its additive manufacturing methods are a way to bypass the delays associated with traditional manufacturing processes, as stated by a spokesperson. However, even the most advanced motors still need AP for ignition.

Funding for SRM production is part of a wider initiative to strengthen the industrial base. McGinn believes that if Washington can prototype the motors, it should also prioritize prototyping AP.

“If establishing a second source is necessary, the government should apply the same strategy it used with Ursa Major and X-Bow—initiating prototype initiatives with additional firms to develop a second AP source,” he proposed.

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