WASHINGTON — The U.S. Air Force Research Laboratory (AFRL) has added $16.4 million to an existing contract with Castelion Corp. for continued development of the company’s Blackbeard low-cost, mass-producible long-range strike weapon.
The modification increases the value of the specific agreement from $20.9 million to $37.2 million. The work is funded through fiscal 2025 research allocations and will be conducted at Castelion’s headquarters in Torrance, California, through June 30, 2028. AFRL at Wright-Patterson Air Force Base manages the contract.
Blackbeard Hypersonic Weapon
Blackbeard is designed to fly at speeds above Mach 5 while maneuvering within the atmosphere. Castelion is developing two configurations: an air-launched version for tactical aircraft and a ground-launched version compatible with the U.S. Army’s M142 HIMARS launcher.
Castelion was founded in 2022 by three former SpaceX engineers and has designed Blackbeard around manufacturing methods intended to support industrial-scale production rather than small production runs.
Navy Advances Blackbeard Program
The U.S. Army and Navy were among the first military services to support the weapon, issuing integration awards in October 2025.
In February 2026, the Navy selected Blackbeard as its first candidate under the Multi-mission Affordable Capacity Effector (MACE) program, which seeks to field larger numbers of affordable, long-range strike weapons.
The Navy then awarded Castelion a $105 million contract in April 2026 to integrate Blackbeard with the F/A-18E/F Super Hornet and support live-fire testing in the Indo-Pacific Command area of responsibility.
In June 2026, the Navy placed a $23.4 million order for 50 early operational capability pre-production prototypes and 50 storage and shipping containers. In August 2026, it added nearly $90 million to advance Blackbeard toward early operational capability and a formal Program of Record, including design changes intended to support future sales to allied nations.
On September 14, 2026, the Navy placed a production delivery order valued at up to $200 million for an initial lot of Blackbeard weapons. The order covers the manufacture, assembly, testing and delivery of fully functional tactical missiles, moving the weapon from prototype development into initial production. An initial obligation of about $43.65 million was funded through Navy weapons procurement accounts, with deliveries scheduled through September 2028.
Production Expansion
Congress increased MACE funding by more than $140 million in the fiscal 2026 defense appropriations act, more than doubling its base funding.
Castelion is expanding production at Project Ranger, a 1,000-acre manufacturing campus in Rio Rancho, New Mexico. The facility is intended to support solid-rocket-motor production, testing and final assembly. The company has reported investment of more than $220 million to $250 million in the facility.
Castelion’s longer-term production target is 500 Blackbeard weapons per year for the U.S. Department of Defense.
The latest AFRL contract modification adds another U.S. military development effort to a Blackbeard program that is simultaneously being advanced by the Navy and Army.
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