Arthur McMiler
Kratos Defense & Security Solutions and Rafael Advanced Defense Systems have formed Prometheus Energetics, a joint venture for the production and distribution of solid rocket motors and other energetics for the defense industrial base. The partnership has a joint total commitment of up to $175 million in capital at approximately 50-50 sharing, Kratos said Wednesday.
It added that Prometheus’ headquarters and facilities will be built in a site of about 500 acres near the U.S. Navy’s Naval Surface Warfare Center, Crane Division and the U.S. Army’s Crane Army Ammunition Activity in Crane, Indiana. The new company is expected to start production in 2027 after the completion of the new company’s plant construction and certification along with Rafael’s technology transfer.
Potential for Creating Supply Chain Value
Eric DeMarco, Kratos president and CEO, equated the joint venture’s value-creation potential to the $1.45 billion other transaction agreement that Kratos secured in January for the Task Area 1 of the Multi-Service Advanced Capability Hypersonic Test Bed 2.0. He noted that “Prometheus responds to a critical need to strengthen the U.S. industrial base” while also supporting the energetics requirements of American allies in the Middle East.
Yoav Tourgeman, president and CEO of Israel-based Rafael, described Prometheus Energetics’ establishment as “a strategic leap forward” and shared DeMarco’s view.
“This step constitutes a strategic vector that combines business considerations in the American market with the increasing demand for energetic products, while significantly enhancing our ability to deliver resilient and reliable supply solutions to our customers,” the Rafael head stressed.
The security and resiliency of the solid rocket motors’ supply chain is also the goal of the collaboration between Lockheed Martin and General Dynamics announced in August. Their strategic partnership’s energetics project is scheduled to start this year with the production of guided multiple launch rocket systems at General Dynamics’ facility in Camden, Arkansas, and subsequent production of other energetics to follow through a phased planning approach.
