Find out how Ursa Major's latest contract win is boosting the rocket propulsion industry and what it means for investors and the defense sector.
By Mike Stone
WASHINGTON (Multibagger) - U.S. rocket propulsion startup Ursa Major announced on Tuesday that it has secured a $12.5 million contract to expand production and testing of new solid fuel rocket engines.
This contract, while relatively small, is part of a larger initiative by the Pentagon to increase the number of rocket manufacturers, especially as stockpiles are depleted due to ongoing conflicts in Ukraine and Israel.
CONTEXT
The funding is part of the Pentagon's Office of Strategic Capital's efforts to support investments in the defense industrial base's supply chain. The Navy is also contributing to the $12.5 million award, which will be matched by Ursa Major, resulting in a $25 million expansion of the company's solid rocket motor capabilities.
This investment will help Ursa Major improve its solid rocket motor manufacturing process as part of the Office of Strategic Capital's Transition Acceleration Program, aimed at developing future defense products.
Additionally, the Navy recently awarded a contract to address the increasing demand for the M104 engine used in RTX Corp's Standard Missile family of missiles.
WHAT'S NEXT
Ursa Major will use its portion of the investment to complete an Advanced Manufacturing Pathfinder program, focusing on designing, manufacturing, and testing a solid rocket motor prototype.
This award is significant as one of the first from the Office of Strategic Capital, established to promote public-private investments in critical technology areas for national security.
Analysis: Ursa Major's contract win is a positive sign for the rocket propulsion industry, indicating growth and innovation in the sector. Investors should take note of this development as it could lead to increased opportunities for investment in defense technology companies. Additionally, the Pentagon's focus on expanding the rocket manufacturing base highlights the importance of supporting domestic production capabilities for national security purposes. Overall, this news underscores the ongoing evolution and advancements in the defense industry, which could have implications for both investors and the broader economy.