AeroVironment Secures Landmark Contract for Laser Weapon Production
Defense company AeroVironment has secured a $464.8 million contract from the U.S. Army to produce laser weapons under its Enduring-High Energy Laser (E-HEL) program, marking the first-ever production deal of this kind in U.S. history. The contract is expected to lead to the mass production of 30-kilowatt LOCUST X3 systems capable of countering military drones and other threats. The E-HEL system offers a cost-effective alternative to traditional missile defense, with an estimated operating cost as low as $1 per shot compared to millions for Patriot missiles. AeroVironment's recent acquisition of Blue Halo has positioned it well in the directed energy sector through its Space, Cyber, and Directed Energy division. The deal highlights growing interest in laser-based defense systems among U.S. military branches due to their scalability, modularity, and cost efficiency.
Tickers: $AVAV $BA $KTOS $LMT $NOC