The expansion is supported by $5 million from the State of New Mexico and $1 million from the City of Albuquerque through Local Economic Development Act funding (LEDA).
Source: Economic Development Department
Photos: Courtesy AeroVironment, Inc.
ALBUQUERQUE — AeroVironment, Inc. (NASDAQ:AVAV) “AV” is investing more than $30 million to expand its Albuquerque defense manufacturing campus, a project expected to create more than 450 jobs and generate more than $670 million in economic impact over the next decade, the company, the State of New Mexico and the City of Albuquerque announced today.
The expansion is supported by $5 million from the State of New Mexico and $1 million from the City of Albuquerque through Local Economic Development Act funding (LEDA). Over the next ten years, AV plans to create more than 450 new jobs, adding to a workforce that already exceeds 400 employees.
The project builds on the successful growth of BlueHalo, which received state and local support in 2022 and was acquired by AV in 2025. Following the acquisition, the company rebranded as AV and has more than doubled its Albuquerque workforce since 2023.
AV’s current Albuquerque campus manufactures several products critical to national security priorities, including tools that support space missions and drone technologies. The company is now committing more than $30 million to expand and modernize its manufacturing facility, significantly increasing production capacity for laser systems, space payloads and advanced defense electronics.
“When America needs to strengthen its national security, it turns to New Mexico. This investment reinforces our state’s role as a national leader in advanced defense and space manufacturing — strengthening U.S. security while creating high-wage opportunities for New Mexicans,” said Governor Michelle Lujan Grisham. “We’re proud to reinvest in a proven operation that delivers returns for our workers, our economy and our future.”
The investment will expand AV’s manufacturing operations across its three existing facilities in the Sandia Science & Technology Park and support new facilities, major capital equipment purchases, and workforce growth, establishing a vertically integrated, next-generation manufacturing campus, establishing a single campus that handles the whole process from start to finish.
“The growth we’re driving in Albuquerque goes beyond our own business,” said AV Chairman, President and CEO Wahid Nawabi. “It’s about strengthening the domestic defense industrial base, creating high-quality American jobs and partnering with New Mexico to continue to develop a durable innovation and manufacturing hub that can deliver when it matters most.”
“This is exactly how economic development is supposed to work,” said Economic Development Cabinet Secretary Rob Black. “We invested in BlueHalo, it delivered with growth and high-paying jobs, and now AV is expanding again — showing why we’re reinvesting in a proven operation that strengthens our economy and our national security.”
“Albuquerque is where defense innovation becomes advanced manufacturing,” said Mayor Tim Keller. “With LEDA support, AV Defense is expanding here, bringing hundreds of good-paying jobs and strengthening our local economy.”
“This move marks a step change in our ability to deliver mission-critical capabilities at scale,” said President of AV’s Space, Cyber & Directed Energy segment Mary Clum. “Albuquerque is a strategic production and integration hub for space-grade components and directed energy systems that directly support U.S. national security priorities. The state’s partnership allows us to accelerate manufacturing, strengthen domestic supply chains and deliver advanced capabilities to our customers faster and more reliably.”
“This is a smart reinvestment in proven growth,” said City of Albuquerque Economic Development Director Max Gruner. “AV Defense is scaling production in Albuquerque, and LEDA keeps the focus on results, jobs and capital investment.”
The LEDA agreement ties state and city support to performance-based milestones for job creation and capital investment, ensuring accountability and strong returns for New Mexico taxpayers.
In the Company’s Words
AV Partners with City of Albuquerque and State of New Mexico in Defense Manufacturing Expansion
ALBUQUERQUE, N.M. — March 3, 2026 — AeroVironment, Inc. (“AV”) (NASDAQ: AVAV), a global leader in advanced defense and aerospace solutions, today announced plans to invest more than $30 million to significantly expand its manufacturing operations in Albuquerque, New Mexico.
Supported by an initial $5 million from the State of New Mexico and $1 million from the City of Albuquerque through the Local Economic Development Act (LEDA), the investment will expand AV’s manufacturing operations across its three existing manufacturing sites in the Sandia Science & Technology Park while supporting major capital equipment purchases and workforce growth.
“The growth we’re driving in Albuquerque goes beyond our own business,” said Wahid Nawabi, Chairman, President, and Chief Executive Officer at AV. “It’s about strengthening the domestic defense industrial base, creating high-quality American jobs, and partnering with New Mexico to continue to develop a durable innovation and manufacturing hub that can deliver when it matters most.”
The investment will further establish a vertically integrated, next-generation manufacturing campus expected to generate more than $670 million in economic impact over the next 10 years, boost production of mission-critical defense and space technologies, create more than 450 high-wage jobs, and strengthen New Mexico’s role in the U.S. defense industrial base by enabling scaled domestic production of directed energy systems and space-grade components that support national security and resilient supply chains.
As part of the expansion, the State of New Mexico and City of Albuquerque have approved a $6 million performance-based incentive package, structured as cash reimbursements tied to verified hiring milestones. The incentive reflects AV’s long-term commitment to New Mexico’s advanced manufacturing and technology workforce, where the company currently employs more than 400 people and has a proven growth record of nearly 30 percent year-over-year from 2023 to 2026.
AV’s Albuquerque operations are a cornerstone of the company’s advanced manufacturing strategy, anchored by its Space & Directed Energy Group, which supports next-generation defense, aerospace, and commercial space programs and develops advanced capabilities, including laser communications, counter-UAS systems, and autonomous and space-based solutions, while also supporting prototype development for U.S. military customers and regional testing and operations.
“This move marks a step change in our ability to deliver mission-critical capabilities at scale,” said Mary Clum, President of AV’s Space, Cyber & Directed Energy segment. “Albuquerque is a strategic production and integration hub for space-grade components and directed energy systems that directly support U.S. national security priorities. The state’s partnership allows us to accelerate manufacturing, strengthen domestic supply chains, and deliver advanced capabilities to our customers faster and more reliably.”
AV currently manufactures several products critical to national security priorities, including advanced radio frequency (RF) systems, satellite communications ground terminals, laser systems and stabilized precision optics and tracking technologies, among others.
“This expansion comes as the federal government continues to emphasize the importance of defense contractors leaning forward, investing in domestic facilities, resilient supply chains, and skilled workforces that can deliver critical capabilities at scale, on time, and cost-effectively,” said Church Hutton, Chief Growth Officer at AV. “AV’s Albuquerque growth reflects this national priority and positions the company to meet accelerating demand across defense, aerospace, and space markets.”
“Albuquerque is where defense innovation becomes advanced manufacturing,” said Mayor Tim Keller. “With LEDA support, AV Defense is expanding here, bringing hundreds of good-paying jobs and strengthening our local economy.”
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