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Government Contracting

Army Advances First Laser Production Deal With AeroVironment, Leonardo DRS

AeroVironment and Leonardo DRS are partnering under a $464.8 million Army contract for the Enduring High Energy Laser program. The deal marks the service's formal transition of directed-energy counter-drone capabilities from experimental prototyping into serial production.

November 4, 2026·2 min read·Analysis·By Defense Signals Desk·Sourced intelligence·
Signal Intelligence™ · generating Executive Brief

The U.S. Army has taken a definitive step toward operationalizing directed-energy weapons, establishing its first formal production effort for a high-energy laser weapon system. Under a $464.8 million Other Transaction Authority (OTA) agreement awarded to AeroVironment for the Enduring High Energy Laser (E-HEL) program, defense contractor Leonardo DRS will supply core power management and environmental control systems. The contract, issued by the Army Portfolio Acquisition Executive for Fires, marks a critical pivot point as the service shifts laser technology out of experimental combat prototyping and into structured, fieldable manufacturing.

Leonardo DRS will support the integration and production of AeroVironment’s LOCUST X3 laser weapon systems. Designed as scalable 30-kilowatt units, the LOCUST X3 is engineered to integrate across mobile tactical ground platforms, including the Army’s Joint Light Tactical Vehicle (JLTV). AeroVironment is slated to deliver a dozen units over the contract lifecycle. While the sub-contract value for Leonardo DRS was not disclosed, its responsibility over thermal and electrical management targets the primary operational bottleneck facing mobile directed-energy deployments: maintaining high power density and cooling under harsh battlefield conditions.

For defense leaders, the E-HEL contract reflects an urgent shift in counter-unmanned aircraft systems (C-UAS) doctrine. As low-cost drone threats proliferate across operational theaters, traditional kinetic interceptors present an unsustainable cost-per-kill ratio and finite magazine capacity. Directed-energy systems offer deep engagement capabilities limited primarily by thermal dissipation and electrical power availability. Transitioning the LOCUST X3 to production indicates that the Army views 30-kW laser assets as mature operational layer defenses against threat drones rather than mere technology demonstrators.

For government acquisition authority and defense industry vendors, the program underscores the strategic utility of OTA vehicles for rapidly transitioning high-consequence technologies into production. Prime contractors and tier-one integrators must note that power infrastructure, environmental resilience, and platform space, weight, and power (SWaP) optimization remain the principal discriminators for directed-energy hardware awards. Companies capable of delivering ruggedized power management systems will likely capture substantial sub-tier revenue as the DoD accelerates the field adoption of laser defenses across joint forces. (Source: Washington Technology)

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