US defence aerospace concern Kratos Defense & Security Solutions and Israel’s Rafael Advanced Defense Systems announced on 26 February 2025 an approximate 50/50 partnership for 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 approximately 500-acre site near the US Navy and Army facility in Crane, Indiana.
Kratos and Rafael (through its US-based subsidiary Rafael USA) have jointly committed up to USD 175 million (EUR 168 million) in capital for the establishment of Prometheus and required property, plant, equipment and personnel needed for the 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 of SRMs in 2027.
“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,” Eric DeMarco, president and CEO of Kratos Defense, was quoted as saying in a joint press release. “Prometheus responds to a critical need to strengthen the US industrial base and will also 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.”
“The establishment of Prometheus Energetics is a strategic leap forward, reinforcing 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,” added Yoav Tourgeman, president and CEO of Rafael Advanced Defense Systems. “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. Through this joint venture, we are deepening our longstanding partnership with the United States, strengthening supply chain independence, and bolstering the critical capabilities needed to address evolving national security challenges.”
