Rafael, Kratos form JV Prometheus Energetics to manufacture solid rocket motors: CRANE, Indiana – In a move aimed at fortifying the United States’ defense industrial base and addressing a critical national security need, Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS) and RAFAEL Advanced Defense Systems Ltd. have announced the formation of Prometheus Energetics, a joint venture focused on the production of solid rocket motors (SRMs) and other energetic materials.
The approximately 50/50 partnership, unveiled on February 26, 2025, will establish Prometheus as a U.S.-based merchant supplier, filling a crucial gap in the nation’s ability to rapidly produce SRMs, a component vital to numerous defense systems, including missile systems and munitions.
Headquartered on a sprawling 500-acre site near the U.S. Navy and Army facility in Crane, Indiana, Prometheus is poised to become a significant player in the energetics sector. The strategic location near existing military infrastructure is expected to facilitate seamless integration and collaboration with defense agencies.
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Kratos and RAFAEL, through its U.S. subsidiary RAFAEL USA, have committed up to $175 million in capital to launch Prometheus. This substantial investment will fund the acquisition of the land, the construction of state-of-the-art manufacturing facilities, the procurement of necessary equipment, and the recruitment of skilled personnel.
The ambitious project anticipates the commencement of SRM production in 2027, following the completion of the plant’s construction and the successful transfer and certification of RAFAEL’s advanced technology. This timeline reflects the complexity and precision required in establishing a modern energetics manufacturing campus.
Eric DeMarco, President and CEO of Kratos Defense, emphasized the strategic importance of Prometheus, stating, “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 U.S. defense industrial base, similar to Kratos’ recent MACH-TB contract award—the largest single-award contract in Kratos history.”
DeMarco further highlighted the venture’s role in addressing critical supply chain vulnerabilities, noting that Prometheus will provide “tens of thousands of SRMs and casted 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.” He likened the investment to previous Kratos initiatives such as Oriole, Zeus, and Erinyes, all aimed at strengthening the U.S. industrial base.
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Yoav Tourgeman, CEO, Rafael Advanced Defense Systems.
Yoav Tourgeman, President and CEO of RAFAEL Advanced Defense Systems Ltd., echoed DeMarco’s sentiments, underscoring the strategic nature of the partnership. “The establishment of Prometheus Energetics is a strategic leap forward, reinforcing RAFAEL’s commitment to strengthening the U.S. defense industrial base while ensuring our allies and partners have access to the most advanced, combat-proven energetics solutions,” Tourgeman stated.
He further explained that the joint venture aligns with RAFAEL’s business objectives in the American market while addressing the escalating demand for energetic products. “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,” he said.
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The collaboration between Kratos and RAFAEL signifies a deepening of the longstanding partnership between the United States and Israel. By establishing Prometheus, the companies aim to bolster supply chain independence and enhance the critical capabilities needed to confront evolving national security challenges.
The selection of Crane, Indiana, as the location for Prometheus’ headquarters is noteworthy. The proximity to the U.S. Navy and Army facility in Crane offers strategic advantages in terms of logistics, collaboration, and access to skilled labor. The region’s established defense infrastructure further reinforces its suitability for this critical manufacturing operation.
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The establishment of Prometheus Energetics comes at a time of heightened geopolitical tensions and increasing demand for advanced defense systems. By providing a reliable and robust source of SRMs, the joint venture is poised to play a pivotal role in ensuring the United States’ national security and supporting its allies. The projected production of tens of thousands of SRMs and casted warheads by 2027 underscores the scale and significance of this undertaking.
As Prometheus Energetics progresses towards its production goals, it will be closely watched by defense industry analysts and policymakers alike. The venture’s success will not only strengthen the U.S. defense industrial base but also serve as a model for future collaborations aimed at addressing critical national security needs.
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