AeroVironment Wins $465 Million to Put High-Energy Lasers Into Serial Production

The U.S. Army awarded AeroVironment a $464.8 million Other Transaction Authority agreement for the Enduring High Energy Laser (E-HEL) program of record. The deal marks the first series-production contract for a high-energy laser weapon system in U.S. military history, shifting directed energy from decades of science demonstrations and small prototype batches into formal force-wide procurement.

Under the agreement, AeroVironment will deliver dozens of its 30-kilowatt-class LOCUST X3 counter-unmanned aerial systems over the coming years. Initial systems will arrive within the next twelve months for government acceptance testing, with company production capacity currently scaling from roughly twenty systems annually toward significantly larger volumes over the next 12 to 24 months.

Breaking the Directed Energy Logjam

Directed energy programs across the Pentagon have historically struggled to cross the acquisition valley of death. For years, service branches funded isolated technology demonstrators that proved lethal on test ranges but failed to transition into formal production lines or sustained field maintenance pipelines.

The E-HEL contract establishes that bridge by designating LOCUST X3 as an enduring program of record. Designed to defeat Group 1 through Group 3 unmanned aerial systems weighing up to 1,320 pounds, the system uses spectrum beam combining to project a lethal 30-kilowatt beam capable of disabling incoming drones at tactically relevant standoffs.

The Economics of Counter-Drone Mass

The operational logic behind the program centers on battlefield economics. In recent conflicts across Eastern Europe and the Middle East, military formations have frequently expended surface-to-air interceptors costing hundreds of thousands of dollars to neutralize commercial-grade or one-way attack drones costing a fraction of that amount.

By contrast, AeroVironment unveiled LOCUST X3 with an operating cost profile below $5 per shot. Because the weapon draws electrical power directly from vehicle generators or mobile power units, its magazine continuously regenerates without requiring physical ammunition replenishment under fire.

Strategic Lessons from Earlier Heavy Laser Efforts

The transition to a 30-kilowatt modular system reflects lessons learned from earlier, heavier directed-energy efforts. A recent Congressional Research Service report detailed how the Army stepped back from fielding massive 300-kilowatt truck-mounted systems like the Indirect Fire Protection Capability-High Energy Laser, while operational evaluations of 50-kilowatt Stryker-mounted prototypes in the Middle East highlighted the challenges of maintaining heavy, sensitive laser hardware in harsh tactical environments.

Rather than waiting for megawatt-class systems to counter hardened cruise missiles, the Army prioritized lightweight, platform-agnostic architectures tailored specifically for drone defense. The LOCUST X3 is engineered for rapid mounting on mobile tactical platforms, with initial deliveries planned for Joint Light Tactical Vehicles and Infantry Squad Vehicles before expanding to heavier ground combat platforms.

Validating the BlueHalo Acquisition

For AeroVironment, the $464.8 million award validates the strategic rationale behind its $4.1 billion acquisition of BlueHalo, which completed in 2025. That transaction broadened the company from a loitering munition and small drone manufacturer into an integrated defense prime spanning electronic warfare, directed energy, and autonomous counter-UAS capabilities.

With production scaling to support serial deliveries, the E-HEL award provides the U.S. Army with its first scalable, low-cost directed energy shield against massed autonomous threats.