US Awards Raytheon Up to $6.3B for SM-3 IB Interceptors — Raytheon has secured a five-year US Department of Defense contract valued at up to $6.3 billion for the production and sustainment of SM-3 Block IB missile interceptors, with provisions for two additional option years. The agreement forms part of five major defence contracts announced in February to expand missile manufacturing and replenish military inventories. It follows Raytheon’s $24.4-billion deal to supply Standard Missile-6 interceptors to the US Navy. While both missiles are launched from ships, the SM-3 is designed primarily to destroy ballistic missiles during their midcourse phase, whereas the SM-6 performs a wider range of air and missile defence tasks. The Block IB is a ship- and land-based interceptor that contributes to the US Navy’s integrated air and missile defence network and was first used in combat in 2024. With an estimated unit price of $10 million to $15 million, it costs considerably less than the SM-3 Block IIA, whose estimated price ranges from $35 million to $40 million, potentially allowing the military to procure greater quantities. The interceptor has a reported maximum range of approximately 900 kilometres and can engage targets at altitudes of around 500 kilometres. Its dual-band infrared seeker helps distinguish targets, while its adjustable divert-and-attitude-control system provides the manoeuvrability needed for accurate engagements.
