Raytheon Signs $250M Deal with Mitsubishi Electric for ESSM Block 2 Missile Production

Agreement allows Japan to locally produce missile components under long-term U.S.-Japan defense partnership
  • Defensemirror.com bureau
  • 11:23 AM, June 25, 2025
  • 580
Raytheon Signs $250M Deal with Mitsubishi Electric for ESSM Block 2 Missile Production
ESSM missile

Raytheon has secured a $250 million contract with Japan’s Mitsubishi Electric Corporation (MELCO) for the licensed production of Evolved SeaSparrow Missile (ESSM) Block 2 systems.

The contract, structured as a Direct Commercial Sale, includes missile kits, components, and parts, along with technical support to enable MELCO to produce the missile in Japan. This arrangement supports Tokyo's efforts to expand its domestic missile production capabilities amid increasing regional security concerns.

The ESSM Block 2 is a short to medium-range, ship-launched missile with enhanced maneuverability and improved performance compared to its predecessor. It features dual-mode guidance and reduced reliance on shipboard radar illumination, allowing for flexibility across various naval combat systems.

The ESSM program is managed by the NATO SEASPARROW Consortium, which includes 12 member nations. Japan is one of the customer nations benefiting from consortium-led developments.

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