RTX’s Raytheon has been awarded a $478 million contract by NATO to replace the Patriot GEM-T missiles that Germany has deployed to war-torn Ukraine, the company announced Tuesday.
The order was awarded by the NATO Support and Procurement Agency, which supports a partnership between Ukraine, Denmark, the Netherlands, Norway and Germany. These countries have agreed to finance the purchase of GEM-T missiles to replace those sent to Ukraine to support the country’s defense against Russia.
“Our customers are already realizing the benefits of bundled, multinational procurement of Patriot missiles through NSPA, including the economics that provide greater affordability and the pre-negotiated contract framework that accelerates the procurement timeline,” said Tom Laliberty, president of land and air defense systems at Raytheon, in an Aug. 6 statement.
“This will not only allow us to better support missile inventories for these European partners, but also strengthen our cooperation, their interoperability and their contribution to a vital NATO mission,” he added.
In January, the multinational coalition jointly ordered up to 1,000 Patriot GEM-T missiles as part of a $5.5 billion production and supply contract for the weapons to COMLOG, a joint venture between MBDA Germany and Raytheon.
There are currently eight European countries purchasing Patriot air and missile defense systems, with that customer list growing to 19 countries worldwide.
Earlier this month, Raytheon won its second contract of the year, worth $1.2 billion, to supply key Patriot air and missile defense components to Germany, as the country sends additional Patriot systems to Ukraine.
Raytheon signed a Patriot systems contract with Germany earlier in March for the same amount. The company is expected to deliver four complete Patriot fire units under the previous contract and four fire units under the new deal.
How companies plan to ramp up production of Patriot missiles
While some components for GEM-T missiles are still made in the United States, Raytheon is expanding its supplier base in Europe to build critical GEM-T components. This effort includes setting up an all-up round integration and testing facility with Germany’s MBDA, Laliberty told Defense News in an interview earlier this year.
MBDA subsidiary Bayern-Chemie will be the new manufacturer of rocket engines for the rocket, while another company in Spain will build a new control system.
Raytheon’s GEM-T missile production continues. There is an order backlog of approximately 1,500 missiles, including the NATO order. In the short term, demand for another 1,000 missiles is estimated.
According to Laliberty, the company is producing about 20 missiles per month and with additional capacity created by international initiatives, it is on track to produce 35 missiles per month by the end of 2027.
