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US Boosts SM-3 Block IB Interceptor Inventory With New Production Order

The US Missile Defense Agency (MDA) has awarded Raytheon a $266.9-million contract modification for the additional production of Standard Missile (SM-3) Block IB exoatmospheric interceptors. 

The award upgrades a previous contract to $1.36 billion, adding 23 all-up rounds for a total of 78 SM-3 Block IB units.

Work under the contract will be carried out in Tucson, Arizona, and Huntsville, Alabama, with completion expected by May 2030.

The decision follows the signing of five landmark agreements between Raytheon and the US Department of Defense in February to expand production of key munitions.

In addition to the SM-3 Block IB, the seven-year agreements cover the production of SM-3 Block IIA, SM-6 missile, the Tomahawk cruise missile, and AIM-120 AMRAAM air-to-air missiles.

Program Revival

The move effectively gives a new lease of life to the Block IB program after the MDA proposed terminating it in its fiscal year 2025 budget request, favoring the more capable SM-3 Block IIA interceptor.

The reversal was prompted by the operational use of SM-3 interceptors during the April 2024 Iran attack on Israel, when US naval assets helped intercept ballistic missile threats targeting Israel.

The interceptor was also deployed during the recent hostilities involving Iran, the US, and Israel, where it has been used to neutralize Iranian ballistic missiles entering Turkey’s airspace.

SM-3 Block IB

Compared with the SM-3 Block IIA, which costs $35 to 40 million, the SM-3 Block IB is significantly cheaper at $10 to 15 million per interceptor, a key factor behind the revival of its procurement.

The lower cost makes the interceptor easier to sustain and deploy in larger numbers during a conflict.

The missile is designed to counter ballistic missile threats at ranges of up to 559 miles (900 kilometers) and altitudes of around 311 miles (500 kilometers). 

Its two-color infrared seeker improves resistance to countermeasures and enhances target discrimination in complex environments.

The missile is also equipped with a throttleable divert-and-attitude-control system, enabling precise maneuvering in the final seconds before impact.

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