The Department of War announced a nearly $21 billion, five-year contract to produce Advanced Medium-Range Air-to-Air Missiles (AMRAAM). While AIM-120 missiles are designed for warplanes in air-to-air combat, they can also be used as ground-launched missile interceptors. 

The Pentagon announced the contract on Monday. “We are working across the defense industry to ramp production and build the Arsenal of Freedom,” said Under Secretary of War for Acquisition and Sustainment Michael P. Duffey. “This award strengthens our ability to equip the Joint Force and our allies with a proven air-to-air capability, ensuring our warfighters maintain a decisive advantage.”

Raytheon, or RTX, is the primary beneficiary of the contract. The deal was issued as an undefinitized contract action, meaning details of the cost and number of missiles could change. Under the contract, Raytheon will produce up to 1,900 AMRAAM missiles annually. 

The AMRAAM, or AIM-120, missiles are designed to be fired from America’s fleet of fighter jets. There are multiple variants of the AIM-120 missile, and the Pentagon announcement did not disclose how many of each variant Raytheon has been contracted to produce. 

While the AIM-120 is primarily an air-to-air missile, it can also be fired from the National Advanced Surface-to-Air Missile System (NASAMS), a ground-based air defense system. The AMRAAM-ER is an extended-range variant designed specifically for ground-based air defense.

Ukraine has relied heavily on the NASAMS system for air defenses. In April, the Center for Strategic and International Studies estimated the US has between 4,000 and 4,500 AIM-120 missiles in its stockpile. It noted that the US could use the AIM-120s as a cheaper option to down Iranian drones compared to Patriot or Standard Missiles. However, the AIM-120s still cost $1 million each.