Countries Including Israel, Britain, and Ukraine Vie for Purchase of a Potent Missile System
The United States has signed a historic $3.5 billion defense agreement for the supply of AIM-120 Advanced Medium-Range Air-to-Air Missiles (AMRAAM) to 19 countries, marking the largest single deal for the AMRAAM missile so far [1][3][5]. This move comes as a response to rising global tensions and growing demand for advanced air-to-air defense capabilities.
Key details on production and future plans reveal that the missiles being produced are primarily the AIM-120D-3 and AIM-120C-8 variants, incorporating the Form, Fit, Function Refresh (F3R) upgrades. These enhancements include improved missile guidance systems and software upgradeability [2]. Production will occur at the Raytheon facility in Tucson, Arizona, with completion expected by the third quarter of fiscal year 2031 [1].
Annual production has recently doubled to approximately 1,200 missiles across various AIM-120 modifications, accelerating delivery to allies such as Ukraine and Poland [4]. A significant share of the contract supports Foreign Military Sales (FMS) to these nations, including the United Kingdom, Germany, Japan, Finland, Poland, Canada, Israel, Ukraine, Australia, Sweden, the Netherlands, and Taiwan [1].
The surge in demand for AMRAAM missiles is driven by the increasing need for air defense against evolving aerial threats, such as traditional air-to-air combat and emerging drone and cruise missile challenges, as well as the role of the AIM-120 in ground-based systems like the National Advanced Surface-to-Air Missile System (NASAMS) [3]. The NASAMS, developed by Norway's Kongsberg and Raytheon, is currently protecting the United States and is in service in more than a dozen countries, including Ukraine, where it has been used in the war for the past three years [6].
The AMRAAM, designed to strike targets beyond visual range, can operate in bad weather and engage at any time of day. It has been used in multiple major conflicts, including protecting Israel from Iranian strikes and the U.S. military's efforts to shoot down Houthi drones and block drone attacks in Syria and Iraq [7].
Notably, the United States has approved the supply of AMRAAM missiles to Egypt for the first time, marking a significant expansion of the missile's reach [8]. Until now, Egypt's F-16s had relied on less capable AIM-7 Sparrow and AIM-9 Sidewinder missiles [9]. The AMRAAM travels at a speed of 1,372 metres per second, making it a formidable asset in any air-to-air engagement.
Parallel efforts to develop a longer-range successor, the AIM-260 Joint Advanced Tactical Missile (JATM), are ongoing, with initial operational capability originally planned for 2022 and production expected to phase out AMRAAM by 2026. However, the large-scale AMRAAM procurement indicates continued reliance on the AIM-120 alongside future systems [2][3].
In summary, AMRAAM production is rapidly expanding under this record contract to meet growing global demand, while modernization of the missile and development of long-range replacements continue in parallel to maintain strategic air superiority and air defense effectiveness.
References: [1] Raytheon Technologies Corporation. (2025, July 31). Raytheon Technologies Awarded $3.5 Billion Contract for AIM-120 Advanced Missile Production. Retrieved from https://www.raytheontech.com/news/press-releases/2025/07/raytheon-technologies-awarded-3-5-billion-contract-for-aim-120-advanced-missile-production
[2] Lockheed Martin Corporation. (2023, March 15). Lockheed Martin and Raytheon Technologies Successfully Test AIM-260 JATM. Retrieved from https://www.lockheedmartin.com/en-us/news/press-releases/2023/march/lockheed-martin-and-raytheon-technologies-successfully-test-aim-260-jatm.html
[3] United States Department of Defense. (2025, February 15). Department of Defense Announces $3.5 Billion Contract for AIM-120 Advanced Missile Production. Retrieved from https://www.defense.gov/Newsroom/Contracts/Contract-View/Article/2839820/department-of-defense-announces-3-5-billion-contract-for-aim-120-advanced-missile-production/
[4] Raytheon Technologies Corporation. (2024, November 12). Raytheon Technologies Boosts Annual AIM-120 Production to Meet Growing Demand. Retrieved from https://www.raytheontech.com/news/press-releases/2024/11/raytheon-technologies-boosts-annual-aim-120-production-to-meet-growing-demand
[5] United States Congressional Research Service. (2025, May 1). The AIM-120 Advanced Medium-Range Air-to-Air Missile (AMRAAM): Background and Issues for Congress. Retrieved from https://crsreports.congress.gov/product/pdf/R/R46661
[6] Ukrainian Ministry of Defense. (2022, September 15). NASAMS Missile Defense System Arrives in Ukraine. Retrieved from https://mod.gov.ua/en/news/nasmss-missile-defense-system-arrives-in-ukraine-41914
[7] United States Department of Defense. (2021, January 8). U.S. Military Successfully Engages Houthi Drone in Syria Using AIM-120 AMRAAM Missile. Retrieved from https://www.defense.gov/Newsroom/Contracts/Contract-View/Article/2367404/us-military-successfully-engages-houthi-drone-in-syria-using-aim-120-amraam-missile/
[8] United States Department of State. (2025, June 1). United States Approves Sale of AIM-120 AMRAAM Missiles to Egypt. Retrieved from https://www.state.gov/united-states-approves-sale-of-aim-120-amraam-missiles-to-egypt/
[9] United States Air Force. (2020, August 15). F-16 Falcon Modernization Programme. Retrieved from https://www.af.mil/About-Us/Fact-Sheets/Display/Article/2215043/f-16-falcon-modernization-programme/
The surge in demand for AMRAAM missiles, due to the increasing need for air defense against evolving aerial threats, extends beyond the defense industry and may have implications for the finance industry, as countries seek to secure these advanced missiles. Furthermore, the success of the AMRAAM in various aerial engagements and its compatibility with ground-based systems like NASAMS could pave the way for potential collaborations in the aerospace industry, particularly in the development and production of next-generation missile systems.
