AV Expands Defense Manufacturing Footprint in Albuquerque With Major New Investment

AeroVironment is moving forward with a significant expansion of its manufacturing presence in Albuquerque, committing more than $30 million to scale production of advanced defense and space technologies. The initiative deepens the company’s role in New Mexico’s growing defense industrial base and is supported by a $6 million performance based incentive package from the State of New Mexico and the City of Albuquerque tied to verified job creation milestones.

Strengthening Domestic Production Capacity for Directed Energy and Space Systems

The expansion builds on AV’s existing operations in the Sandia Science and Technology Park, where the company manufactures systems including its LOCUST directed energy platform for counter UAS missions. The investment will support major capital equipment purchases, facility upgrades, and workforce growth across three manufacturing sites. AV projects that the effort will generate more than $670 million in economic impact over the next decade and create more than 450 high wage jobs.

Company leadership frames the move as part of a broader national push to reinforce domestic production capacity for mission critical technologies. The Albuquerque campus is a central hub for AV’s Space and Directed Energy Group, which develops laser communications systems, counter UAS technologies, space grade components, and prototype solutions for U.S. military customers.

A Vertically Integrated Manufacturing Campus

AV’s long term plan is to establish a fully integrated manufacturing environment capable of supporting high rate production of directed energy systems and space hardware. The company notes that its Albuquerque workforce has grown nearly 30 percent year over year from 2023 to 2026, reflecting sustained demand across defense, aerospace, and commercial space markets.

The expansion supports AV’s strategy to consolidate advanced engineering, precision manufacturing, and system integration within a single regional footprint. This approach is intended to improve production throughput, strengthen supply chain resilience, and accelerate delivery timelines for customers requiring rapid fielding of new capabilities.

State and Local Support for Defense Industrial Growth

The State of New Mexico and City of Albuquerque have approved a combined $6 million in LEDA funding, structured as cash reimbursements tied to hiring milestones. State and local officials emphasize that the project aligns with New Mexico’s broader economic development priorities, particularly in advanced manufacturing and national security sectors.

AV currently employs more than 400 people in the region, and the company’s continued growth is viewed as a catalyst for expanding the state’s skilled technology workforce.

Meeting Rising Demand Across Defense and Space Markets

AV manufactures a range of systems that support national security priorities, including advanced RF technologies, satellite communications ground terminals, laser systems, stabilized optics, and tracking solutions. Company leaders note that federal agencies are increasingly emphasizing the need for defense contractors to invest in domestic facilities and resilient supply chains capable of delivering critical capabilities at scale.

The Albuquerque expansion positions AV to meet accelerating demand for directed energy systems, autonomous platforms, and space based technologies, while reinforcing the company’s national manufacturing footprint.