AeroVironment Wins $464.8 Million Army Enduring-High Energy Laser Contract

AeroVironment (AVAV ) announced on September 2, 2026, that it has been awarded a contract valued at $464.8 million by the U.S. Army Portfolio Acquisition Executive for Fires (PAE Fires) program office for the Enduring-High Energy Laser (E-HEL) program, a counter-unmanned aircraft system effort built around the company’s LOCUST family of laser weapon systems. The company’s announcement describes the award as the first production contract for directed energy systems in United States history.

The agreement is structured as an Other Transaction Agreement (OTA). Under its terms, the Arlington, Virginia-based company will deliver dozens of LOCUST X3 laser weapon systems over the next few years in support of multi-year Army fielding requirements. AV will also provide ongoing system support and training as part of the program. The Army intends the systems to strengthen layered air defense against group 1-3 unmanned aircraft systems, the small and medium drone categories that have become a central force-protection problem for ground units.

The LOCUST X3 is a 30-kilowatt, platform-agnostic directed energy system. Under the E-HEL effort it will be integrated with various platforms, including the Army’s Joint Light Tactical Vehicle (JLTV), with options for palletized configurations. The company is also analyzing the potential to integrate the system on an Infantry Squad Vehicle (ISV) in the near future. According to AV’s product documentation, the LOCUST laser weapon system is designed for hard-kill engagements against a range of targets, with a sensor-agnostic architecture that accepts radio-frequency cueing from a variety of sensor types, multi-target infrared search-and-track modes, an operator interface built around a common gaming controller, and integration support for command-and-control networks in either fixed-site or mobile configurations.

“This award marks a defining moment not only for AV, but for the future of modern defense,” said Wahid Nawabi, Chairman, President, and Chief Executive Officer at AV. “The transition of directed energy from experimentation to an enduring, fielded capability reflects years of collaboration, innovation, and operational success alongside the U.S. Army.”

From Prototype to Production

The E-HEL program builds on the Army Multi-Purpose High Energy Laser (AMP-HEL) prototypes currently in use by the Army. AV announced on August 31, 2025 that it had delivered the first two mobile counter-UAS prototype laser weapon systems to the U.S. Army Rapid Capabilities and Critical Technologies Office (RCCTO) under the first increment of the AMP-HEL prototyping effort. Those prototypes paired AV’s 20-kilowatt-class LOCUST laser weapon system with the General Motors (GM ) Defense Infantry Squad Vehicle platform. Following integration at the company’s directed energy manufacturing facility in Albuquerque, New Mexico, the prototypes underwent government acceptance testing at Yuma Proving Ground in Arizona, and Army units conducted new equipment training at Fort Sill, Oklahoma. AV stated at the time that it would deliver a second AMP-HEL increment consisting of two Joint Light Tactical Vehicles equipped with a 20-kilowatt-class LOCUST laser, radar, and command-and-control systems.

The E-HEL award also follows LOCUST testing at White Sands Missile Range led by Joint Interagency Task Force 401 (JIATF-401) and PAE Fires. According to the company, that testing demonstrated safe, effective counter-drone operations in U.S. airspace and directly enabled a Department of War and Federal Aviation Administration safety agreement validating the system for domestic use. The company states that the same demonstration informed coordination between the two agencies on the safe employment of lasers in domestic airspace.

Production Backed by Albuquerque Expansion

The production ramp will be supported by a $30 million investment in AV’s Albuquerque, New Mexico facility announced in March 2026. In its March 3, 2026 announcement, the company said it planned to invest more than $30 million to expand manufacturing operations across its three existing sites in the Sandia Science & Technology Park. The State of New Mexico and the City of Albuquerque approved a $6 million performance-based incentive package structured as cash reimbursements tied to verified hiring milestones, comprising an initial $5 million from the state and $1 million from the city through the Local Economic Development Act. AV said the expansion is expected to generate more than $670 million in economic impact over 10 years and create more than 450 high-wage jobs, adding to a New Mexico workforce of more than 400 people. The Albuquerque operations are anchored by the company’s Space & Directed Energy Group, which produces laser systems, stabilized precision optics and tracking technologies, radio-frequency systems, and satellite communications ground terminals.

“This program represents the culmination of years of operational lessons learned and rapid prototyping,” said John Garrity, Vice President of Directed Energy Systems at AV. “E-HEL is not a future capability, it is a production-ready system, built on proven technology, and designed to meet the demands of today’s fight while scaling for tomorrow’s threats.”

Beyond the Army work, the company states that the LOCUST family has been demonstrated aboard the U.S. Navy aircraft carrier USS George H.W. Bush and that its performance was featured on CBS News’ 60 Minutes. The LOCUST X3, the latest evolution of the line, introduces enhanced power and modularity together with the company’s AVHalo AI-driven targeting, and serves as a key effector within AV’s HaloShield architecture, according to the company. AV, which trades on Nasdaq, develops autonomous systems, loitering munitions, counter-UAS technologies, space-based platforms, directed energy systems, and cyber and electronic warfare capabilities.