Department of War Invests $32.7M to Accelerate Solid Rocket Motor Component Production

The Defense Production Act (DPA) Title III is a U.S. law that lets the federal government spend money directly to build up domestic production of materials and equipment that are essential for national defense. Under Title III, the President (and delegated agencies like the Department of Defense) can give companies grants, loans, loan guarantees, or purchase commitments to help them build or modernize factories, buy equipment, and expand capacity when the private market alone is not meeting defense needs. The goal is to fix critical industrial shortfalls and make U.S. supply chains more resilient.

These specific Title III investments are managed by the Defense Production Act (DPA) Purchases Office, which is overseen by the Manufacturing Capability Expansion and Investment Prioritization (MCEIP) directorate within the Office of the Assistant Secretary of Defense for Industrial Base Policy (the Pentagon’s Industrial Base Policy office).

Two companies will receive the $32.7 million in funding:

• Systima Technologies Inc. (part of Karman Space & Defense) in Mukilteo, Washington – $5.0 million.
• R.E. Darling Co., Inc. (REDAR) in Tucson, Arizona – $27.7 million.

The funding targets two specific types of solid rocket motor (SRM) components:

• SRM nozzles – Systima will add a new production line and an optimized production cell for complex nozzles.
• SRM internal case insulation materials – REDAR will expand and modernize capacity for internal insulation that protects the motor case from heat and erosion.

The public announcement does not give a specific calendar timeline for when the new nozzle line or insulation capacity will be fully online. It states only that the projects were approved on September 30, 2025, and are intended as an “expedient” or fast route to increasing solid rocket motor capacity. No detailed schedule has been released.

Solid rocket motors power many U.S. missiles and rockets, so shortages in key components can delay weapons production. The Department of Defense says there is a surge in demand for propellant-based weapons but only a narrow supplier base, creating bottlenecks in SRM production. By funding extra capacity for nozzles (Systima) and internal insulation (REDAR), the investments are meant to:

• Remove key production bottlenecks in the SRM supply chain.
• Increase overall SRM industrial capacity and competition.
• Make missile and munition production more reliable, which in turn supports U.S. military readiness by reducing the risk of shortages and delays.