Raytheon Wins $6.3B Deal for SM-3 Block IB Missile Production — The US Department of Defense has awarded Raytheon a five-year contract worth up to $6.3 billion to manufacture and sustain Standard Missile-3 Block IB (SM-3 IB) interceptors, with two additional option years included. The award is part of five major agreements announced in February to accelerate missile production and replenish US missile defence inventories. It follows a separate $24.4-billion contract for Raytheon to produce Standard Missile-6 interceptors for the US Navy. Although both weapons are ship-launched, the SM-3 primarily intercepts ballistic missiles during midcourse flight, while the SM-6 supports a broader range of air and missile defence missions. The SM-3 Block IB can also operate from land-based systems and became operationally used in combat in 2024 as part of the US Navy’s integrated air and missile defence architecture. Estimated to cost $10 million to $15 million per interceptor, the Block IB is significantly less expensive than the SM-3 Block IIA, which costs approximately $35 million to $40 million per unit. This price difference could make larger-scale procurement more affordable. The interceptor reportedly has a range of up to 900 kilometres and an engagement altitude of around 500 kilometres. Its dual-colour infrared seeker improves target discrimination, while a throttleable divert-and-attitude-control system enables precise manoeuvring during interception.
