Exclusive - The Pentagon signs agreements with defense companies regarding missiles loaded inside containers.

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From Phil Stewart

- The U.S. Department of Defense (Pentagon) will announce on Wednesday framework agreements that will enable it to acquire more than 10,000 low-cost missiles loaded inside shipping containers over a three-year period beginning in 2027.

A statement seen by Reuters before publication said the Pentagon will enter into those agreements with Andorel, Quasspire, Leidos and Zone5, and together they will launch the "Low Cost Containerized Munitions Program" (LCCM).

The program's evaluation phase will include the purchase of experimental missiles from the four companies starting in June 2026. The statement did not mention the cost or specify the weapon systems from the four companies, but it said the agreements included terms for future price-fixed production contracts.

The military views containerized weapon systems as a low-cost, fast-moving way to deploy missiles in standard, ordinary shipping containers.

The statement said a separate agreement with defense startup Castillion outlines a plan to award a two-year contract to purchase at least 500 Blackbird missiles annually, the company’s first hypersonic offensive weapon, once it passes testing and verification procedures.

The statement said the Pentagon is seeking licenses and approvals to purchase more than 12,000 Blackbird missiles over five years.

Michael Duffy, the Under Secretary of Defense for Acquisition and Sustainment who is in charge of weapons procurement at the Pentagon, said in the statement that the agreements demonstrate how the United States is expanding its engagement in the sector beyond traditional "prime" contractors.

He added that these agreements send "a clear and long-term demand signal to innovative newcomers."

Emile Michael, Under Secretary of Defense for Research and Engineering, said the agreements require companies to deliver on time and at a specified cost.

He continued in the statement, "We will provide large quantities at reasonable prices to our fighters at an unprecedented speed."

The Pentagon is stepping up its requests to Congress for funding for munitions, which are in increasing demand as the war with Iran continues.

General Dan Keane, chairman of the Joint Chiefs of Staff, said in written testimony this week that the Pentagon's budget for fiscal year 2027 will allocate more than $26 billion for multi-year procurement contracts for critical munitions.