Rocket Engine Production Bottleneck: US Secures Solid-Fuel Rocket Capacity Years Before Plant Opens

Avio, Italy’s largest rocket engine manufacturer, has signed agreements with Lockheed Martin and Raytheon to give the companies access to a US solid-fuel engine plant that will not be built until 2028.

The Italian defense media, Rivista Italiana Difesa, reported the deals.

According to the report, the agreements mark a key step toward establishing a new solid-fuel rocket engine facility for the US defense market.

Avio USA, Avio’s US subsidiary, plans to launch construction in 2026 and complete it by 2028. The location has not yet been disclosed. Early reservations underscore that engines remain a critical bottleneck in missile production.

The new facility is expected to cover all major production stages, from fuel formulation to final engine assembly, providing American clients with a fully integrated and autonomous supplier.

Under its agreement with Lockheed Martin, the US group will have priority access to part of the plant’s capacity to meet rising demand for solid-propellant rocket engines for both tactical and strategic missiles. Negotiations are planned for a strategic cooperation agreement to ensure a stable supply of high-performance engines.

Meanwhile, Avio and Raytheon signed a memorandum of understanding to support the development of the plant and to define collaboration terms for solid-propellant engine production. Raytheon will also receive priority access to portions of the facility.

The agreements follow a July 2024 contract for preliminary engineering work on the Mk-104 engine for the Standard Missile (SM) family of air-defense weapons.

Giulio Ranzo, Avio’s CEO, described the deals as fundamental to securing the US project. The move comes as the Italian state group Leonardo reduces its stake in Avio to just over 19%, aiming to focus investments on other European industrial projects.

In October 2024, Avio announced plans to triple output at its Italian plant within five years to meet US Army orders for solid-fuel rocket engines.

“Currently, we produce 200-300 engines per year in Colleferro and can triple that in four to five years with current commitments,” Ranzo said.

Avio is known for manufacturing the Vega small-lift launch vehicle and producing engines and components for MBDA’s Aster 30 and CAMM-ER air-defense missiles.