US Army Awards $465 Million Contract for LOCUST X3 Directed Energy Weapons

A $464.8 million production contract awarded this week marks the transition of directed energy weapons from experimental prototypes to standard-issue air defense. The U.S. Army selected AeroVironment to supply the LOCUST X3 laser weapon system, moving the technology into widespread operational deployment under the Enduring-High Energy Laser (E-HEL) program.[2][5][6]

The five-year agreement represents the first time the branch has ordered a laser system for full-scale production rather than limited testing. The shift is driven directly by the proliferation of Group 1 and Group 2 unmanned aerial systems (UAS), which have forced U.S. personnel to rely on expensive kinetic interceptors to neutralize inexpensive commercial drones.[2][4]

Directed energy systems flip this cost-exchange ratio. While a traditional surface-to-air missile can cost upwards of $2 million per shot, the LOCUST X3 operates with a cost-per-engagement measured in single dollars—often less than $10 per firing—limited only by the availability of electrical power to the platform.[3][7]

"This award mainstreams directed energy in the U.S. arsenal, providing a highly lethal, low cost-per-kill solution to counter asymmetric drone threats," noted an AeroVironment program director in the company's release detailing the $465 million ceiling contract.[2][3][7]

The production order follows successful operational use of the system on American soil. Prior to the E-HEL award, the Army deployed the LOCUST laser to counter border drone incursions, validating the system's ability to track, target, and disable small aerial threats outside of a controlled testing environment.[1]

The LOCUST X3 is designed for rapid integration onto existing tactical vehicles and fixed infrastructure. By utilizing a modular architecture, the system allows forward-operating bases to establish a persistent defensive dome against loitering munitions and surveillance drones without requiring specialized, single-purpose vehicles.[4][5]

For AeroVironment, the contract cements its position in the directed energy sector. The company has historically been known for its own loitering munitions and small reconnaissance drones, but this award expands its portfolio into the counter-UAS infrastructure required to defeat those exact technologies across 360-degree threat environments.[2][7]

The E-HEL program functions as one node in a larger, layered air defense strategy. While lasers handle low-altitude, slow-moving drones, kinetic interceptors remain reserved for complex ballistic and cruise missile threats that require physical destruction at longer ranges.[3]

Initial deliveries under the 60-month contract are expected to begin in late 2026. The systems are slated for deployment across forward-operating bases and critical domestic infrastructure, establishing the baseline for the Army's next-generation air defense network.[4][6]