The wars in Ukraine and the Middle East have revealed a vulnerability in Western defence supply chains: an inability to produce munitions fast enough. A Texas startup that aims to make rocket propellant far more quickly than traditional methods has raised a large funding round to scale production.
Firehawk Defense, based in Dallas, has raised more than $150 million in a Series D round at a valuation of more than $1.4 billion, according to an announcement by Rochefort Asset Management on Thursday, October 29, reported by Tech Startups. The round was co-led by private equity firm Advent International and Rochefort, which had an earlier lending relationship with Firehawk.
What Firehawk makes
Firehawk develops solid rocket motor propellant, components for Hydra-70 rockets and components for 155mm artillery. Its key innovation is the use of thermoplastic materials in propellant, which the company says can produce usable energetic materials in hours rather than weeks.
Traditional solid rocket propellant is made by mixing ingredients and casting them into motors, where the mixture must cure over an extended period. The process is slow, hazardous and dependent on a small number of suppliers. Faster production methods could help address the shortages that have constrained Western munitions output.
Scaling production
Firehawk operates a facility in Crawford, Mississippi, where it is already integrating Hydra-70 rockets, according to Tech Startups. It is building the Great Plains Arsenal in Lawton, Oklahoma, which is expected to begin commissioning in early 2027 with planned initial output of about 740,000 pounds of thermoplastic propellant a year, with potential expansion beyond three million pounds. These are planned figures, not current production.
The company reported a successful six-for-six live-fire test of Hydra-70 rockets following a US Army award.
The munitions shortage
The war in Ukraine consumed artillery shells, rockets and missiles at a pace that Western defence industries struggled to match. Stockpiles in the United States and Europe were depleted by supplies to Ukraine, and production capacity, which had shrunk after the Cold War, could not be expanded quickly. Solid rocket motors became a particular bottleneck, as only a few companies produce them in the United States.
Governments have since committed large sums to expanding munitions production, and new entrants have emerged to challenge established defence contractors. Conflicts in the Middle East have added to demand for missiles and interceptors.
The defence tech boom
Firehawk is part of a broader wave of investment in defence technology startups, which has accelerated in recent years. Companies such as Anduril, Shield AI and others have raised billions of dollars to build drones, autonomous systems, missiles and munitions. Investors, once wary of defence, have increasingly embraced the sector, driven by rising defence budgets and a belief that new companies can produce weapons faster and more cheaply than traditional contractors.
The involvement of Advent International, one of the world's largest private equity firms, signals the growing mainstream acceptance of defence technology as an investment category.
Controversy and ethics
Investment in weapons manufacturing remains controversial among some investors, particularly those with environmental, social and governance (ESG) mandates. However, the war in Ukraine has shifted attitudes in Europe and the United States, with many investors now viewing defence as essential for security. Some ESG frameworks have been revised to accommodate defence investments.
Implications for India
India has been expanding its own defence manufacturing under the Make in India and Atmanirbhar Bharat initiatives, encouraging private companies to produce munitions, missiles and propellants. Indian companies such as Solar Industries, Bharat Dynamics and others have expanded production, and India has increased defence exports, including artillery shells and other munitions.
The global shortage of munitions has created export opportunities for Indian defence manufacturers. Innovations in propellant production, such as Firehawk's, highlight the importance of technology in defence manufacturing competitiveness.
Thermoplastic propellant explained
Most solid rocket propellants use thermoset binders, which harden irreversibly as they cure, a process that can take days or weeks. Thermoplastic binders, by contrast, can be melted and reshaped, potentially allowing propellant to be produced more quickly and in more flexible ways, using techniques that resemble plastics manufacturing. Firehawk says its approach can produce usable energetic materials in hours.
Faster production could also allow manufacturers to respond more quickly to surges in demand, a key lesson from recent conflicts. Safety and reliability, however, are paramount in munitions, and new propellant technologies must undergo extensive testing and qualification before they can be widely adopted by militaries.
Government contracts
Defence startups depend on government contracts, which can be slow to award and subject to budget politics. Firehawk's US Army award and successful live-fire tests are important steps toward larger production contracts. The Pentagon has sought to diversify its supplier base and encourage new entrants, particularly in areas where production capacity has been constrained.
Private capital in defence manufacturing
Building munitions factories requires large investments in specialised facilities, safety systems and regulatory compliance. Private capital, including venture funding and private equity, is increasingly financing such investments, alongside government support. The involvement of Advent International suggests that large investors see defence manufacturing as an attractive long-term opportunity given rising global defence budgets.
Investor appetite
Defence technology has become one of the fastest-growing areas of venture investment, with startups raising record sums and several reaching valuations above $1 billion. Investors are attracted by long-term government contracts, rising budgets and the potential to modernise industries that have seen limited innovation for decades. Firehawk's valuation of more than $1.4 billion places it among the sector's most valuable startups and reflects the strategic importance of munitions production.
What comes next
Firehawk will use the funding to complete its Oklahoma facility and scale production. Its progress will be watched as a test of whether new manufacturing technologies can meaningfully expand Western munitions production capacity. With defence budgets rising and demand for rockets and artillery remaining high, the company is positioned in one of the most strategically important areas of the defence industry.
Defence analysts will also watch whether the company's technology is adopted more broadly by the US military and its allies, since wider adoption would confirm that new manufacturing methods can help close the gap between munitions demand and the West's limited production capacity in a more dangerous world. The coming year, including the commissioning of the Oklahoma plant, will be decisive for the company as it moves from development to large-scale production.
