Raytheon, an RTX business, has secured a $250 million contract from Japan’s Mitsubishi Electric Corporation (MELCO) to support licensed production of the Evolved SeaSparrow Missile (ESSM) Block 2, the company announced.
Under the agreement, Raytheon will provide missile kits, parts, and technical support for the assembly of the ESSM Block 2 variant at MELCO’s facilities in Japan. The deal strengthens Japan’s domestic missile manufacturing capability and expands its role in maintaining and producing one of the most widely deployed naval missile systems.
“This innovative licensed production arrangement is the culmination of decades of partnership,” said Barbara Borgonovi, president of Naval Power at Raytheon. “As Japan invests in this critical weapon system, it will strengthen their defense capabilities while reinforcing the vital security alliance between our nations.”
Raytheon and MELCO have worked together on defense technologies for over 50 years. This latest contract builds on that history, allowing Japan not only to sustain its ESSM inventory but also to deepen its defense industrial base. It comes at a time when Japan is expanding its maritime and missile defense posture in response to regional security concerns.
The ESSM Block 2 is a short- to medium-range, ship-launched missile developed for naval air and surface defense. Compared to the previous Block 1 variant, Block 2 features improved maneuverability, increased range, and advanced dual-mode guidance that reduces reliance on shipboard radar illumination. The system is integrated across a variety of naval platforms and combat systems, offering flexibility in high-threat maritime environments.
As noted by the company, ESSM Block 2 includes a software-driven architecture with substantial digital processing margin, enabling future upgrades to counter evolving threats without redesigning hardware. The system is part of a broader cooperative development program under the NATO SEASPARROW Consortium, which includes 12 member nations.
Raytheon said it will continue providing technical support to MELCO to ensure production quality and system performance meet alliance standards.