Lockheed Martin UK wins hypersonic target contract under £20 million UK defence investment

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Lockheed UK hypersonic target contract

Highlights

Lockheed Martin UK secured a £20 million contract for Project Bowline, developing a hypersonic target simulating Mach 5 threats to test missile defences.
The contract sustains 63 jobs in Bedfordshire and engages 15 UK SMEs, supporting the Ministry of Defence’s goal to boost SME spending to £7.5 billion by 2028.
Project Bowline aligns with AUKUS Pillar 2 and is part of a broader UK initiative, including £400 million annually for Defence Innovation and simplified SME procurement.

Hypersonic target programme and SME plan

As announced by GOV.UK, a £20 million contract awarded to Lockheed Martin UK funds the development of a hypersonic target vehicle intended to simulate threats travelling at five times the speed of sound. The system, known as Project Bowline, is designed to test next-generation missile defence tools, including sensors and interceptors being developed to counter advanced aerial threats.

The contract supports around 63 jobs in Bedfordshire and is expected to benefit 15 UK small and medium-sized enterprises through the supply chain. The announcement comes alongside a new Defence SME Action Plan, which the government says is meant to widen access for smaller companies across defence procurement and supply networks.

Minister for Defence Readiness and Industry Luke Pollard says the plan is intended to give firms a clearer and faster route to contracts, while major programmes such as Bowline show how defence spending flows to smaller businesses. The Ministry of Defence also says the action plan simplifies contracting processes and supports its goal of increasing defence spending with SMEs to £7.5 billion by 2028, a 50% rise from current levels.

Industry impact and AUKUS cooperation

Project Bowline forms part of AUKUS Pillar 2, the partnership between Australia, the UK and the U.S. focused on advanced defence capabilities, including hypersonic and counter-hypersonic technologies. The programme is positioned as part of the UK's effort to maintain missile defence capacity against rapidly evolving threats.

National Armaments Director Rupert Pearce says the project helps the UK stay ahead of hypersonic risks while strengthening both national defence and a key industrial sector. The Ministry of Defence says it already works with around 12,000 SMEs through its supply chain and highlights other initiatives including Defence Growth Deals, Defence Technical Excellence Colleges, contracts for 13 British-based SMEs through the Defence Unicorn Fund, and £400 million a year ringfenced for UK Defence Innovation.

ADS Chief Executive Kevin Craven says the SME Action Plan is a timely step for unlocking more capacity across the UK's defence industrial base. He says commitments to simplify procurement, improve access to opportunities and deepen engagement with smaller companies should help innovative firms compete, invest and scale across the country.

In our earlier article on Canada’s funding for Pratt & Whitney Canada’s Longueuil modernization, we detailed Ottawa’s plan to provide up to $34 million to support a $275 million upgrade of the aircraft engine manufacturing site in Quebec. We noted that the initiative is framed as a way to sustain high-value jobs, improve advanced manufacturing performance, and reinforce resilience across critical aerospace supply chains.

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