AV Partners with City of Albuquerque and State of New Mexico in Defense Manufacturing Expansion
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Key Terms
directed energy systemtechnical
A directed energy system uses concentrated beams of energy — such as lasers, microwaves, or particle streams — aimed at a target to disable, damage, or communicate without physical projectiles. Investors care because these systems represent a specialized technology market with high upfront R&D and manufacturing costs, potential for long-term service and upgrade contracts, and sensitivity to government defense spending, regulations, and export controls; think of it like replacing bullets with a powerful, precision flashlight that requires expensive, specialized bulbs and rules about where it can be used.
counter-UAStechnical
Counter-UAS (counter-unmanned aircraft systems) are tools and tactics used to detect, track, and disable or divert drones that pose a threat to people, property, or operations. Think of them as a combination of a security camera, alarm system, and net that can find an unwanted flying device and stop it before it causes harm. Investors care because demand, regulation, and deployment of these systems affect revenue, contract opportunities, legal risk, and the valuation of companies that build or use them.
local economic development act (leda)regulatory
A Local Economic Development Act (LEDA) is a law that lets local governments offer financial help—like grants, low-interest loans, tax breaks or infrastructure spending—to attract or expand businesses in their area. For investors, LEDA incentives can change a project’s financial picture by lowering costs or speeding approval, much like a rebate or free road built to your storefront; they can boost returns but also introduce political or repayment risks that affect value.
space-grade componentstechnical
Space-grade components are parts and materials built to withstand the extreme conditions of space—radiation, vacuum, wide temperature swings, and intense vibration—so they reliably perform on rockets, satellites and other spacecraft. For investors, they matter because these components cost more, require longer development and strict certification, and create higher barriers to entry and supply-chain risk, which can affect a manufacturer’s costs, timelines and competitive edge.
laser communicationstechnical
Laser communications use focused beams of light to send data between points (for example between satellites, aircraft, or ground stations) instead of radio waves. Like a flashlight sending Morse code at very high speed, they can carry much more information with lower delay and greater privacy, so investors watch them as a way to boost network capacity, cut recurring bandwidth costs, and open new markets, while also facing technical and regulatory risks.
satellite communicationstechnical
Satellite communications are signals—voice, data or video—sent from ground stations to orbiting satellites and then relayed back to other ground stations or devices, acting like relay stations in the sky that connect distant places. Investors care because these systems enable global connectivity for phones, internet, broadcasting and military uses; they involve large upfront costs, long-term contracts and technological or regulatory risks, so changes in demand, launch costs or spectrum rules can materially affect a company’s revenues and valuation.
radio frequency (rf) systemstechnical
Radio frequency (RF) systems are collections of hardware and software that generate, transmit, receive and process electromagnetic signals used for wireless communication, sensing and certain medical tools — think of them as invisible highways carrying data and energy. Investors care because RF performance and compliance affect product reliability, market access, regulatory approvals, spectrum or licensing costs, and manufacturing scale, all of which influence revenue potential, margins and competitive position.
$6 million incentive package tied to job creation milestones as AV commits more than $30 million in local investment and workforce growth
ALBUQUERQUE, N.M.--(BUSINESS WIRE)--
AeroVironment, Inc. (“AV”) (NASDAQ: AVAV), a global leader in advanced defense and aerospace solutions, today announced plans to invest more than $30 million to significantly expand its manufacturing operations in Albuquerque, New Mexico.
AV’s LOCUST™ directed energy system is manufactured at the company's Albuquerque, New Mexico facility, where advanced manufacturing and precision engineering come together to deliver scalable, speed-of-light defense capabilities for counter-UAS missions.
Supported by an initial $5 million from the State of New Mexico and $1 million from the City of Albuquerque through the Local Economic Development Act (LEDA), the investment will expand AV’s manufacturing operations across its three existing manufacturing sites in the Sandia Science & Technology Park while supporting major capital equipment purchases and workforce growth.
“The growth we’re driving in Albuquerque goes beyond our own business,” said Wahid Nawabi, Chairman, President, and Chief Executive Officer at AV. “It’s about strengthening the domestic defense industrial base, creating high-quality American jobs, and partnering with New Mexico to continue to develop a durable innovation and manufacturing hub that can deliver when it matters most.”
The investment will further establish a vertically integrated, next-generation manufacturing campus expected to generate more than $670 million in economic impact over the next 10 years, boost production of mission-critical defense and space technologies, create more than 450 high-wage jobs, and strengthen New Mexico’s role in the U.S. defense industrial base by enabling scaled domestic production of directed energy systems and space-grade components that support national security and resilient supply chains.
As part of the expansion, the State of New Mexico and City of Albuquerque have approved a $6 million performance-based incentive package, structured as cash reimbursements tied to verified hiring milestones. The incentive reflects AV’s long-term commitment to New Mexico’s advanced manufacturing and technology workforce, where the company currently employs more than 400 people and has a proven growth record of nearly 30 percent year-over-year from 2023 to 2026.
AV’s Albuquerque operations are a cornerstone of the company’s advanced manufacturing strategy, anchored by its Space & Directed Energy Group, which supports next-generation defense, aerospace, and commercial space programs and develops advanced capabilities, including laser communications, counter-UAS systems, and autonomous and space-based solutions, while also supporting prototype development for U.S. military customers and regional testing and operations.
“This move marks a step change in our ability to deliver mission-critical capabilities at scale,” said Mary Clum, President of AV’s Space, Cyber & Directed Energy segment. “Albuquerque is a strategic production and integration hub for space-grade components and directed energy systems that directly support U.S. national security priorities. The state’s partnership allows us to accelerate manufacturing, strengthen domestic supply chains, and deliver advanced capabilities to our customers faster and more reliably.”
AV currently manufactures several products critical to national security priorities, including advanced radio frequency (RF) systems, satellite communications ground terminals, laser systems and stabilized precision optics and tracking technologies, among others.
“This expansion comes as the federal government continues to emphasize the importance of defense contractors leaning forward, investing in domestic facilities, resilient supply chains, and skilled workforces that can deliver critical capabilities at scale, on time, and cost-effectively,” said Church Hutton, Chief Growth Officer at AV. “AV’s Albuquerque growth reflects this national priority and positions the company to meet accelerating demand across defense, aerospace, and space markets.”
“Albuquerque is where defense innovation becomes advanced manufacturing,” said Mayor Tim Keller. “With LEDA support, AV Defense is expanding here, bringing hundreds of good-paying jobs and strengthening our local economy.”
About AV
AeroVironment (“AV”) (NASDAQ: AVAV) is a defense technology leader delivering integrated capabilities across air, land, sea, space, and cyber. The Company develops and deploys autonomous systems, loitering munitions, counter-UAS technologies, space-based platforms, directed energy systems, and cyber and electronic warfare capabilities—built to meet the mission needs of today’s warfighter and tomorrow’s conflicts. At the core of these technologies lies AV_Halo™, a modular, mission-ready suite of AI-powered software tools that empowers warfighters and enables full-battlefield dominance: detect, decide, deliver. With a national manufacturing footprint and a deep innovation pipeline, AV delivers proven systems and future-defining capabilities at speed, scale, and operational relevance. For more information, visit www.avinc.com.
Safe Harbor Statement
Certain statements in this press release may constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, forecasts, and assumptions that involve risks and uncertainties, which could cause actual results to differ materially. Factors that may cause such differences include, but are not limited to, our ability to perform under existing contracts and obtain new ones; regulatory changes; competitor activities; market growth; product development challenges; and general economic conditions. For a more detailed discussion of these risks, please refer to AeroVironment’s filings with the Securities and Exchange Commission. We undertake no obligation to update forward-looking statements as a result of new information or future events.
