The U.S. Navy has awarded defense technology startup Castelion its first production contract for the Blackbeard hypersonic missile. This $23.4 million deal includes 50 pre-production missiles and shows the Navy is ready to move the program past development and testing.

This contract comes as the Pentagon looks for faster, more affordable hypersonic weapons for long-range strikes. For Castelion, it is the first step toward making Blackbeard at a scale that could support future military missions.

Navy moves Blackbeard toward operational service

The contract helps further develop the Blackbeard weapon system and expands manufacturing at Castelion’s Project Ranger site in Rio Rancho, New Mexico.

Blackbeard is designed to be a low-cost, easy-to-produce hypersonic missile capable of exceeding Mach 5, or over 3,800 mph (6,100 km/h). At these speeds, it can cover long distances quickly and is much harder to intercept than traditional weapons.

Most of the work for this contract will happen in Rio Rancho, with some activities in Torrance, California. Castelion expects to finish the work in 2027.

This new contract shows increasing confidence in the program as it moves from flight testing to limited production and future deployment.

“Blackbeard was designed from the beginning to support our nation’s conventional deterrence,” Castelion Co-Founder and CEO Bryon Hargis said in a press statement.

“This award reflects the Navy’s continued commitment to rapidly advancing affordable, manufacturable long-range strike capability and moving Blackbeard toward early operational use.”

Series of major contracts accelerates program

This production contract comes after several major government deals Castelion has won this year.

In February, the company received a contract worth almost $50 million to accelerate development and produce prototypes of the Blackbeard system. This funding was intended to support testing and prepare the program for future needs.

Two months later, in April, Castelion landed another big contract worth $107 million. This deal aims to integrate Blackbeard with the Navy’s F/A-18 fighter jets, giving the missile more ways to be used.

These back-to-back contracts show the program is gaining momentum as the Navy looks for new ways to use hypersonic weapons on different platforms.

Expanding launch options beyond aircraft

The company is also working on new ways to launch Blackbeard, which could make it more flexible in operations.

The company has teamed up with defense tech firm Saronic to put the missile on the Marauder unmanned surface vessel. They plan a demonstration in 2027, which could be the first time a hypersonic weapon is launched from an unmanned surface ship.

If the test works, it will show a new way to use hypersonic weapons from unmanned naval platforms, without needing a crew.

Project Ranger becomes production hub

To support its long-term manufacturing plans, the defense firm has put over $250 million into Project Ranger, its large production campus in New Mexico.

The facility covers about 1,000 acres (405 hectares) and is the main site for Castelion’s push to make hypersonic weapons more cheaply and in bigger numbers than traditional methods. The new Navy contract will help grow production at the site and support the delivery of the first 50 pre-production missiles.

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