AeroVironment Surges 9.6% After $30M Albuquerque Manufacturing Expansion
AeroVironment will invest $30 million to expand manufacturing across three Albuquerque sites, supported by $5 million from New Mexico and $1 million from the City of Albuquerque plus a $6 million performance-based incentive, targeting $670 million in economic benefits and 450 new jobs over 10 years. The expansion will boost production of directed energy systems and space-grade components to strengthen U.S. defense supply chains while contract negotiations continue with the U.S. Space Force.
1. Expansion Details
AeroVironment plans to invest $30 million to expand manufacturing across its three Albuquerque sites in the Sandia Science & Technology Park, partnering with local and state authorities. The facilities will produce mission-critical directed energy systems and space-grade components to meet growing defense and space technology demands.
2. Economic Impact and Incentives
New Mexico is contributing $5 million and the City of Albuquerque $1 million through the Local Economic Development Act, alongside a $6 million performance-based incentive tied to verified hiring milestones. Upon full operations, the company expects the project to generate $670 million in economic benefits and create more than 450 high-wage jobs over the next decade.
3. Space Force Contract Negotiations
AeroVironment is in active discussions with the U.S. Space Force to finalize a firm-fixed-price contract for its SCAR mobile ground station program. The existing contract was paused to renegotiate pricing and delivery terms, with both parties working to secure an expedited timeline for production.