Charles R. Goulding and Nimra Shakoor explain how L3Harris’ decades-long commitment to 3D printing helped position it at the center of a new government-backed model for defense readiness.
In mid-January 2026, the U.S. government announced a US$1 billion investment in L3Harris Technologies’ rocket motor business, highlighting a shift in how Washington approaches defense manufacturing. Rather than relying solely on procurement contracts, the government is increasingly making direct financial investments in industrial capabilities deemed critical to national security. Missile propulsion has emerged as a strategic priority, as rising global demand has exposed persistent constraints in domestic production capacity.
The investment will support the creation of a new, publicly traded company centered on L3Harris’ solid rocket motor and missile propulsion operations. According to Reuters, the government’s funding is structured as a convertible preferred security that will convert to equity upon a planned initial public offering later in 2026. The goal is to expand U.S.-based production capacity for solid rocket motors used across major missile systems, including air and missile defense interceptors and long-range strike weapons.
This initiative mirrors recent government actions in other strategic sectors. Washington has committed substantial funding to domestic semiconductor manufacturing through investments tied to Intel and has supported initiatives to secure critical minerals and rare earth elements used in defense and advanced electronics (Reuters). These moves reflect a growing recognition that manufacturing capacity itself is a strategic asset in areas where the market struggles to respond to surging demand.
L3Harris and Additive Manufacturing
A major reason L3Harris has become central to this strategy is its long-standing investment in additive manufacturing. The company has spent more than two decades developing and qualifying 3D printing processes for propulsion hardware, emphasizing rigorous testing before introducing new techniques into production programs. L3Harris reports that additive manufacturing consistently delivers lower costs, shorter lead times, and greater design flexibility across its propulsion portfolio.
In addition to advanced manufacturing technologies, L3Harris has been expanding its physical production capacity. In 2025, the company grew its Advanced Manufacturing Facility – South in Huntsville, Alabama, a dedicated site for solid rocket motor components. This expansion enhances the company’s ability to meet rising demand while supporting key missile programs domestically.
Key 3D printing applications at L3Harris include:
- Bantam Engine Family: Consolidates more than 100 traditional parts into three major 3D printed components, reducing design and manufacturing time from over a year to a few months, and cutting costs by roughly 65 percent.
- RS-25 Engines for NASA Artemis: 3D printed components in the RS-25 engines reduce production costs by about 30 percent compared to earlier versions used on the Space Shuttle.
- In-Space Engine (ISE) Family: Lightweight, pressure-fed bipropellant engines produced with additive manufacturing, enabling shorter lead times and lower costs for satellite maneuvering and future on-orbit missions.
The Pentagon’s investment underscores that supporting advanced production capabilities is as important as acquiring the weapons themselves. By backing a supplier that has demonstrated faster development cycles and lower-cost production, Washington is likely aiming to translate technologies such as additive manufacturing into faster missile output and more efficient replenishment.
Blending Innovation and Investment
The planned spin-off of the rocket motor unit reflects a hybrid model that blends public and private capital. L3Harris will retain control of the new company while the government gains a financial stake tied to long-term production performance. If successful, this structure could potentially serve as a model for how hybrid public-private arrangements might strengthen defense manufacturing capacity. Advanced technologies, such as additive manufacturing, may therefore improve production. They can also support broader innovation and development activities, creating a natural bridge to research incentives.
The Research & Development Tax Credit
The now permanent Research and Development (R&D) Tax Credit is available for companies developing new or improved products, processes, and/or software. 3D printing can help boost a company’s R&D Tax Credits. Wages for technical employees creating, evaluating, and revising 3D printed prototypes are typically eligible expenses toward the R&D Tax Credit. Similarly, when used as a method of improving a process, time spent integrating 3D printing hardware and software can also be an eligible R&D expense. Lastly, when used for modeling and preproduction, the costs of filaments consumed during the development process may also be recovered.
Whether it is used for creating and testing prototypes or for final production, 3D printing is a strong indicator that R&D Credit-eligible activities are taking place. Companies implementing this technology at any point should consider taking advantage of R&D Tax Credits.
Looking Ahead
L3Harris’ integration of additive manufacturing and its expanded missile propulsion capabilities illustrate a new paradigm in U.S. defense readiness: speed, flexibility, and domestic industrial strength. The government’s US$1 billion investment not only secures critical production capacity but also encourages innovation, efficiency, and broader economic incentives for companies advancing advanced manufacturing. By combining financial support, technological leadership, and policy tools, Washington’s efforts help ensure that America’s defense systems are faster, more resilient, and more cost-effective, while positioning L3Harris at the forefront of this strategic transformation.
