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The U.S. government will invest $1 billion in L3Harris Technologies' rocket motor business, ensuring a reliable supply of motors for missiles including Tomahawks and Patriot interceptors. L3Harris plans to spin off its rocket motor unit into a publicly traded company, with the investment converting to equity upon the company's IPO in the second half of 2026.

This investment is part of a broader strategy to strengthen the defense supply chain and comes amid concerns over production delays in the defense sector. The structure of this investment, combining government securities with a public offering, may raise regulatory scrutiny due to potential conflicts of interest. L3Harris' Missile Solutions unit will retain majority ownership following the spin-off.