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Anduril and two other companies selected by the Pentagon to manufacture low-cost cruise missiles

Anduril, a defense company, announced that it had signed a framework agreement with the Pentagon for the delivery of thousands of low-cost Barracuda 500 cruise missiles over a seven-year period starting in 2027.

The United States government has been urging defense firms to increase production due to the dwindling stock of weapons in the country as a result of global conflicts.

The Air Force's Family of Affordable Mass Missiles Program includes the framework agreement, which also included CoAspire?and zone 5, according to a separate statement from the U.S. Defense Department.

The agreement includes both lug-launched and pallet-launched weapons, which are mounted on fighter aircraft wings.

Anduril was founded in 2017. In September 2024, it completed the first successful flight test with the pallet-launched Barracuda 500M. It expects to test the lug launch variant within the next few months.

The company said that the U.S. government plans to purchase up to 8,000 vehicles each year, including both versions.

Anduril signed an agreement in May to deliver 1,000 ground launched variants of the Barracuda 500M every year for three years.

Anduril stated that "by establishing framework agreements... over?the next few?years?, the Department has energized non-traditional industry base."

Anduril raised $5 billion earlier this year in a round of venture capital led by Thrive Capital, Andreessen Horowitz and Andreessen Horowitz. This doubled its valuation from $39 billion to $61 billion.

The Norwegian defense and technology company?Kongsberg acquired?Zone 5, while Virginia's CoAspire was owned by its founders, and had no outside investors. Aishwarya Jain reports from Bengaluru, Joyjeet Das edits.

(source: Reuters)