The Pentagon plans to buy more than 10,000 low-cost cruise missiles under a major new multiyear weapons procurement effort.
The Pentagon is betting heavily on cheap, mass-produced strike weapons as it prepares for future high-intensity conflicts, unveiling a sweeping plan to buy thousands of cruise missiles from a mix of traditional defense firms and newer military tech companies.
Under a newly launched initiative called the Low Cost Containerization Munitions Program, the Defense Department signed framework agreements with Anduril Industries, Leidos, CoAspire, and Zone 5 Technologies. The effort could lead to the procurement of more than 10,000 low-cost cruise missiles starting in 2027. The Defense Department plans to begin evaluating early missile systems from the companies next month before larger production orders begin later this decade.
Shift toward cheaper weaponsPentagon leaders want to move away from limited stocks of expensive precision weapons. Instead, officials now favor systems that can be built quickly and in large numbers. The agreements establish pricing structures and production expectations years before full manufacturing begins. Defense officials believe the approach will help industry expand capacity faster while avoiding delays tied to traditional contracting methods.
Emil Michael, the Pentagon’s chief technology officer and under secretary for research and engineering, said the new model pushes companies to invest in their own facilities and research programs.
“This commercial style of partnership is fully aligned with Secretary Hegseth’s Acquisition Transformation Strategy,” Michael said. Officials also stressed that some participating companies could scale production without direct Pentagon funding. New missile families emergeAnduril said its deal centers on the Barracuda-500M, a surface-launched cruise missile designed for lower-cost production. The company expects to deliver at least 1,000 rounds annually across three years beginning in 2027.
Meanwhile, Leidos revealed plans for a larger missile derived from its AGM-190A Small Cruise Missile program. The company said the new munition nearly doubles the original system’s size. Leidos expects engineering and flight testing to continue before full-rate manufacturing starts in 2027. The Pentagon has not yet disclosed technical details for the weapons proposed by CoAspire or Zone 5 Technologies.
Hypersonic plans expandThe Defense Department also announced a separate agreement with startup Castelion tied to the company’s Blackbeard hypersonic strike weapon. The arrangement outlines a future contract for at least 500 missiles over two years, with options for additional purchases later. Pentagon officials said the structure encourages Castelion to continue expanding its privately funded manufacturing footprint. Castelion first drew attention last year after revealing that Blackbeard had secured awards connected to Army and Navy programs.
The company, however, has not publicly identified the launch platforms involved. The Pentagon’s latest agreements reflect a broader effort to rapidly rebuild America’s missile inventory as military planners prepare for longer and more demanding conflicts. Officials increasingly view affordable long-range weapons as essential for sustaining combat operations against heavily armed adversaries. The initiative also signals growing Pentagon confidence in venture-backed defense startups, many of which now compete directly with established military contractors for major weapons programs.
Analysts expect the agreements to influence future procurement strategies across several branches of the U.S. military.
Barracuda-500M Blackbeard Hypersonic Weapon Castelion Coaspire Cruise Missiles Hypersonic Missiles Leidos Pentagon US Department Of Defense Zone 5 Technologies
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