U.S. Army Awards Its First-Ever Contract for Laser Weapons, System Is Called LOCUST
The U.S. Army awarded AeroVironment a $464.8 million contract for its LOCUST laser weapon system, designed to counter drones. The X3 laser system, part of the E-HEL program, can target drones weighing 20 to 1,320 pounds and costs $5 per shot. AeroVironment demonstrated the system's safety and effectiveness in recent tests.
How this was made
The 30-second read
Why it matters
The contract establishes AeroVironment as a primary supplier for Army laser weapons, likely driving future orders.
Market read
First Army laser weapons contract could boost AeroVironment stock and signal broader defense sector trends.
What to watch
Potential regulatory scrutiny of high‑energy lasers operating in domestic airspace.
Background
AeroVironment's LOCUST system has been tested on a carrier and integrated with its Halo_Shield architecture.
Ticker impact
U.S. Army awarded AeroVironment a $464.8 million contract for its LOCUST laser weapons system.
Potential upside of 5‑10% on news release.
Large defense contract, first-ever Army laser weapons award, high visibility and repeat orders.
Market effects
May signal increased U.S. defense spending on directed‑energy weapons, benefiting other laser‑tech firms.
U.S. defense sector could see modest uplift.
Highlights growing interest in laser weapons worldwide.
Counterpoint
If integration challenges delay deployment, the contract value may not translate into near‑term earnings.
Key entities
- CompanyAeroVironment
U.S. defense contractor developing the LOCUST laser system.
- GovernmentU.S. Army
Awarded the $464.8 million contract for laser weapons.
