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Immediate Release

DoD Enters Agreement to Expand Domestic Manufacturing to Strengthen U.S. Missiles and Munitions Supply Chains

The Department of Defense's (DoD) Office for the Assistant Secretary of Defense for Industrial Base Policy (OASD (IBP)) has entered into an agreement with Arconic Corporation to increase production of missiles and munitions.

The purpose of the $45.5 million agreement with Arconic is to increase production of High Purity Aluminum (HPA) at its facility in Davenport, Iowa.  The low-cost production of HPA by foreign smelters has resulted in decreased production of HPA in the United States.  

The DoD is utilizing Defense Production Act (DPA) Title III authorities and funds appropriated by the Additional Ukraine Supplemental Appropriations Act.  The project will provide the United States much-needed surge capacity for HPA production and mitigate risks to national security in the event of an industrial mobilization.  The funds will be used for infrastructure at the facility and modifications to accommodate the increased capacity and new equipment.  Among the improvements are the design and installation of a new furnace and the implementation of new control and automation systems. HPA is a critical material for many military and commercial systems, including aerospace platforms and tactical ground vehicles.

"The Office of Industrial Base Policy continues to support industrial sectors of strategic importance to protect American national security and deter adversarial aggression," said Dr. Laura Taylor-Kale, ASD(IBP).  "The company receiving funding is involved in a manufacturing sector identified by President Biden as critical for protecting domestic supply chains."

About the Department of Defense's Office of the Assistant Secretary of Defense for Industrial Base Policy

Industrial Base Policy is the principal advisor to the Under Secretary of Defense for Acquisition and Sustainment (USD(A&S)) for developing Department of Defense policies for the maintenance of the United States defense industrial base (DIB), executing small business programs and policy, and conduction geo-economic analysis and assessments.  The office also provides the USD(A&S) with recommendations on budget matters related to the DIB, anticipates and closes gaps in manufacturing capabilities for defense systems, and assesses impacts related to mergers, acquisition, and divestitures.  IBP monitors and assesses the impact of foreign investments in the United States and executes authorities under sections 2501 and 2505 U.S.C. Title 10.