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Northrop Grumman to Make US Navy’s Upgraded ASW Torpedo for $233M

Northrop Grumman is set to manufacture and deliver an upgraded version of the US Navy’s lightweight torpedo used in anti-submarine warfare (ASW) — the MK54 MOD 2.

The $233-million contract involves a custom-designed warhead for increased lethality, proof of manufacturing and qualification phases, as well as delivery of multiple torpedoes for qualification testing. 

Work on the integration and initial proof of manufacturing will be performed at the company’s facility in Plymouth, Minnesota, and Allegany Ballistics Laboratory in Rocket Center, West Virginia.  

Northrop indicated that it is an “urgent US Navy requirement” that will be rapidly delivered through the company’s expanded facilities and capabilities, as the service aims for the torpedo’s initial operational testing and evaluation in 2027, according to Naval Technology.

“Northrop Grumman is leveraging over 80 years of innovative torpedo technology, combined with our capacity and speed in delivery, to accelerate the design qualification and manufacturing for the advanced lightweight torpedo,” said Dave Fine, Northrop Grumman’s VP of Armament Systems.

MK54 Torpedo

The advanced lightweight torpedo is launched from surface ships, fixed-wing aircraft, and helicopters to track, classify, and strike subsurface targets.

Building on the MOD 0 and MOD 1 variants originally produced by Raytheon, the MOD 2 was designed under a collaborative agreement with the US Navy and the Australian Defence Force, with Northrop Grumman as the prime contractor. 

L3Harris Technologies is also contributing to the program, having completed a critical test of its Stored Chemical Energy Propulsion System power plant in August 2025, a key milestone in the development of the MK54 MOD 2, specifically the Increment 2 configuration.

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