Kratos and RAFAEL establish JV to build Solid Rocket Motors

San Diego-based Kratos Defense & Security Solutions, Inc. and Israeli firm RAFAEL Advanced Defense Systems Ltd have announced the establishment of a US-based merchant supplier of Solid Rocket Motors (SRMs) and other energetics. The new joint venture, named Prometheus Energetics, is set to be headquartered on an approximate 500-acre site near the US Navy and Army facility in Crane, Indiana.

RAFAEL already manufactures both SRMs and warheads in Israel for weapons used by the Israel Defence Force (IDF) and export customers, including the Spike anti-armour missile, Python air-air missile, Barak surface-air missile and the second stage of the Arrow interceptor. The company’s High-Energy Laser System (HEL) is expected to be delivered to the IDF this calendar year.

Kratos has not manufactured SRMs or other energetics before, but in January this year was awarded the Pentagon’s US$1.45 billion ($2.33 billion) Multi-Service Advanced Capability Test Bed (MACH-TB) 2.0 contract. Under this contract the company will develop an affordable flight test bed to rapidly increase the USA’s hypersonic flight test capacity. Hypersonic flight involves rocket- or SCRAMJET-powered air vehicles flying at greater than Mach 5.

Kratos and RAFAEL, through its US-based subsidiary RAFAEL USA, have jointly committed up to US$175 million ($280 million) to establish Prometheus and acquire the property, plant, equipment and personnel needed for its new, state-of-the-art energetics manufacturing campus and facilities. After construction of the plant and once RAFAEL’s technology transfer is completed and certified for operations, Prometheus is projected to begin production in 2027 of SRMs.

“We believe Prometheus, once up and running at full rate production, will be a step function catalyst in value creation for Kratos’ stakeholders and the US defence industrial base, similar to Kratos’ recent MACH-TB contract award—the largest single-award contract in Kratos history,” said Eric DeMarco, President and CEO of Kratos Defense. “Like other major Kratos investments such as Oriole, Zeus, and Erinyes, Prometheus responds to a critical need to strengthen the US Industrial Base and will also provide tens of thousands of SRMs and cast warheads supporting both America’s most reliable partner in the Middle East and United States national security related demand from a true SRM and energetics merchant supplier.” 

The establishment of Prometheus Energetics is a strategic leap forward, said Yoav Tourgeman, President and CEO of RAFAEL Advanced Defense Systems Ltd. “It reinforces RAFAEL’s commitment to strengthening the US defence industrial base while ensuring our allies and partners have access to the most advanced, combat-proven energetics solutions.

“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.”