# U.S. Navy Awards Castelion $200M Hypersonics Contract

The U.S. Navy awarded Castelion a production delivery order valued up to **$200 million** on September 14, 2026, to manufacture, assemble, test, and deliver Blackbeard Hypersonic Weapons. This contract marks Castelion's transition from prototype development under a SBIR Phase III award to full-scale production, reflecting the Navy's strategic emphasis on accelerating hypersonic strike capabilities through commercial innovation. Work will be performed at Castelion's facilities in New Mexico and California, supporting rapid capability deployment to the fleet.

- This contract follows an earlier **$23.4 million** firm-fixed-price order for 50 Blackbeard Early Operational Capability weapons awarded in June 2026, indicating a phased acquisition approach.
- Procurement professionals should note the Navy's commitment to leveraging small business innovation for advanced weapons production, highlighting opportunities for contractors specializing in hypersonic technologies.
- The contract underscores the importance of facilities in New Mexico and California as key production sites, which may influence regional supplier and subcontractor engagement.
- Industry stakeholders can anticipate increased demand for manufacturing, testing, and integration services related to hypersonic weapons systems as the Navy expands its strike capabilities.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Physical Infrastructure
**Published:** September 21, 2026

### Government Entities
- U.S. Navy (USNavy)
- Portfolio Acquisition Executive Aviation (PAE(A))
- Future Capability Development and Integration Aviation Rapid Capabilities Cell
- U.S. Army (USA)
- U.S. Air Force (USAF)

### Vendors
- Castelion (prime contractor)

### Sources
- [The dream of every new defense tech company is to transition to a production contract

Last week, @Castelion announced exactly that

$200M production delivery order from @USNavy for Blackbeard Hypersonics

https://t.co/x45nDLS9nH https://t.co/AyIp9it3PX](https://x.com/lacostejonathan/status/2102057121294463243) - twitter-defense