Lockheed Partners with General Dynamics Amid Rising Rocket Demand
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The ongoing conflicts and border tensions around the world have caused a state of attentiveness among global leaders and this has in turn surged the demand for defensive precautions.
Amidst all this, aerospace and defense giant Lockheed Martin (LMT:US) recently announced that it has partnered with General Dynamics (GD:US) to produce solid rocket motors, a critical component in missile propulsion, in response to increasing global demand.
The surge in demand is further fueled by efforts to replenish U.S. military stockpiles, which has led to concerns over potential shortages in rocket motor supply, potentially impacting missile production.
General Dynamics will commence production of these solid rocket motors for the Guided Multiple Launch Rocket System (GMLRS) from the start of 2025 at its facility in Camden, Arkansas. Lockheed Martin, the manufacturer of the GMLRS, plans to increase its deliveries from 10,000 units in 2024 to 14,000 units in 2025.
Historically, the supply of rocket motors has been dominated by Northrop Grumman (NOC:US) and L3Harris Technologies (LHX:US). However, the Pentagon has recently shown interest in expanding its supplier base by considering new entrants like startup rocket maker Ursa Major.
While the surging demand for defense mechanisms is increasing, some U.S. lawmakers were also securing their positions in the defense stocks.
Since this year's start, Lockheed Martin has witnessed some confident bets in its stock which trades over 22% in green YTD. Congress members such as Rep. Jared Moskowitz and Kathy Manning have increased their respective holdings in the defense firm.
Although General Dynamics hasn't experienced any recent trading activity, Congresswoman Lois Frankel holds a substantial amount of shares in the defense giant.
