Kratos Defense & Security Solutions, a U.S. defense aerospace company, and Israel’s Rafael Advanced Defense Systems announced on February 26, 2025, that they are forming a joint venture with an approximately equal partnership to establish a U.S.-based supplier of solid rocket motors (SRMs) and other energetic materials.
The new entity, named Prometheus Energetics, will be headquartered on a 500-acre site near a U.S. Navy and Army facility in Crane, Indiana. Kratos and Rafael, through its U.S. subsidiary Rafael USA, have pledged up to $175 million (€168 million) to fund the development of Prometheus, including the acquisition of necessary land, facilities, equipment, and workforce for a cutting-edge energetics manufacturing complex. Production of SRMs is expected to commence in 2027 following the completion and certification of Rafael’s technology transfer.
Kratos Defense President and CEO Eric DeMarco highlighted the significance of Prometheus, stating that once it reaches full-scale production, it will be a major driver of value for Kratos’ stakeholders and the U.S. defense-industrial base, comparable to the company’s recent MACH-TB contract win—the largest single-award contract in its history. He emphasized that Prometheus will address a vital need in strengthening domestic manufacturing capabilities while supplying thousands of SRMs and casted warheads to support both U.S. national security interests and key allies in the Middle East. Yoav Tourgeman, President and CEO of Rafael Advanced Defense Systems, described Prometheus as a pivotal move that reinforces Rafael’s commitment to fortifying the U.S. defense sector while ensuring that allies have access to cutting-edge, combat-tested energetic solutions. He noted that the venture aligns business interests with rising demand for energetic products, enhances supply chain resilience, and strengthens critical defense capabilities to meet evolving security challenges.
