Can Anduril Disrupt the Defense Industry's Duopoly?

Anduril opened a solid rocket motor factory in Mississippi with plans to produce up to 6,000 tactical motors annually by 2026, aiming to become the third major U.S. supplier alongside two established defense contractors. The facility has already tested over 700 motors. Rising global demand for advanced weaponry has led the U.S. Department of Defense to fund new entrants like Ursa Major and X-Bow Systems, but all manufacturers depend on ammonium perchlorate, currently supplied at scale by only one U.S. company, American Pacific. Northrop Grumman's efforts to establish a second production line have been slow due to certification requirements. AMPAC is investing $100 million to expand production capacity by 50 percent, targeting completion next year. Industry and government leaders highlight the need for additional suppliers and long-term procurement commitments to address supply chain vulnerabilities.

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