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The Pentagon will invest $1 billion in a spinoff from L3Harris focused on increasing solid rocket motor production for tactical missiles. This investment aims to replenish national missile reserves depleted by transfers to Israel and Ukraine.

It marks the first time the U.S. military will take an ownership stake in a defense contractor. The funding is from the Pentagon's Industrial Base Analysis and Sustainment fund and will require additional private investment. Concerns about potential conflicts of interest in the defense sector have been raised, but officials emphasize the need for this investment to expand the industrial base and ensure future success.