The Army has selected Hanwha Defense USA for an enhanced use lease at Pine Bluff Arsenal in Arkansas as part of a broader effort to modernize the munitions supply chain and strengthen domestic production of critical energetics.
Hanwha plans to invest about $1.3 billion in the project, which is expected to generate roughly 200 skilled jobs, the service said Wednesday. The lease would support the construction and operation of a new facility focused on producing key ingredients used in explosives and propellants, materials that underpin munitions such as 155mm artillery rounds. Final terms remain subject to lease negotiations.
Brent Ingraham, assistant secretary of the Army for acquisition, logistics and technology, said the partnership reflects a model the Army intends to use to reinforce both commercial and organic industrial base capacity.
The 2026 Army Summit, hosted by the Potomac Officers Club on June 18, will convene senior Army leaders and industry partners to examine how the service is restructuring its approach to resources, contracting and modernization. Discussions will focus on supporting the Army’s 2030 goals, including continued progress toward establishing and sustaining a unified network. Register now.
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What Is the Enhanced Use Lease Program?
The Army’s enhanced use lease program allows the service to lease underutilized installation property to private-sector partners, with proceeds potentially reinvested into critical infrastructure priorities.
The Pine Bluff lease follows a series of Army efforts to expand production capacity and modern manufacturing across the defense industrial base.
In early 2025, the Army began construction of a new ammunition manufacturing facility at the Lake City Army Ammunition Plant in Missouri to produce 6.8mm rounds supporting the Next Generation Squad Weapon program. Maj. Gen. John Reim said at the time that battlefield success begins in production facilities.
More recently, the Army partnered with AMTEC to open a new 40mm grenade production line and indoor test range in Janesville, Wisconsin. Reim said the investment is part of the Army’s largest infrastructure and munitions production push since World War II, noting that billions have been directed into modernization since 2022.
What Other US Energetics Efforts Is Hanwha Pursuing?
Hanwha has been expanding its U.S. industrial partnerships tied to ammunition and energetics production.
In October 2025, Hanwha Aerospace and Global Military Products formed a strategic partnership to pursue Department of War opportunities in ammunition and energetics. Hanwha Defense USA Chief Operating Officer Mike Smith said the effort is intended to strengthen supply chain resilience while delivering advanced munitions capabilities for U.S. and allied forces.
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