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The Pentagon is set to invest $1 billion in a spinoff from L3Harris aimed at boosting solid rocket motor production for tactical missiles, addressing depleted national reserves due to aid to Israel and Ukraine. This marks the first instance of the U.S. military taking an ownership stake in a defense contractor, with funding sourced from the Industrial Base Analysis and Sustainment fund, alongside the need for further private investment. While concerns about potential conflicts of interest have been raised, officials stress the importance of this investment for expanding the industrial base.