ALBUQUERQUE, N.M. (Mar. 3, 2026) — AeroVironment, Inc. (NASDAQ: AVAV) has announced plans to invest more than $30 million to expand and modernize its defense manufacturing campus in Albuquerque, a project expected to create over 450 new jobs and generate an estimated $670 million in economic impact over the next decade.
The expansion is supported by $5 million from the State of New Mexico and $1 million from the City of Albuquerque through performance-based Local Economic Development Act (LEDA) funding.
Over the next ten years, the company will add more than 450 high-wage positions to a workforce that already exceeds 400 employees in Albuquerque.
Strengthening New Mexico’s Role in National Security Manufacturing
The project builds on the growth of BlueHalo, which received state and local support in 2022 and was acquired by AeroVironment in 2025. Since 2023, the company has more than doubled its Albuquerque workforce.
AeroVironment’s Albuquerque campus currently manufactures advanced systems critical to U.S. national security, including:
- Space mission technologies
- Drone and unmanned systems technologies
- Laser and directed energy systems
- Space-grade payloads and advanced defense electronics
The $30 million investment will expand production capacity across the company’s three facilities within the Sandia Science & Technology Park while supporting new infrastructure, capital equipment purchases, and workforce growth. The result will be a vertically integrated, next-generation manufacturing campus capable of handling the full production lifecycle.
“When America needs to strengthen its national security, it turns to New Mexico,” said Governor Michelle Lujan Grisham. “This investment reinforces our state’s role as a national leader in advanced defense and space manufacturing while creating high-wage opportunities for New Mexicans.”
Expanding the Domestic Defense Industrial Base
Company leadership emphasized that the expansion is part of a broader effort to enhance U.S. defense manufacturing capabilities and domestic supply chain resilience.
“The growth we’re driving in Albuquerque goes beyond our own business,” said Wahid Nawabi, Chairman, President and CEO of AeroVironment. “It’s about strengthening the domestic defense industrial base, creating high-quality American jobs and building a durable innovation and manufacturing hub that can deliver when it matters most.”
Mary Clum, President of AV’s Space, Cyber & Directed Energy segment, noted that the expansion significantly enhances production capacity for mission-critical systems.
“This marks a step change in our ability to deliver mission-critical capabilities at scale,” Clum said. “Albuquerque is a strategic production and integration hub for space-grade components and directed energy systems that directly support U.S. national security priorities.”
Performance-Based Investment Ensures Accountability
The LEDA agreement ties state and city incentives to measurable performance milestones related to job creation and capital investment, ensuring accountability and return on investment for taxpayers.
“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.”
Local leaders emphasized the expansion’s role in strengthening Albuquerque’s position as a defense innovation and advanced manufacturing center.
“Albuquerque is where defense innovation becomes advanced manufacturing,” said Mayor Tim Keller. “This expansion brings hundreds of good-paying jobs and strengthens our local economy.”
Positioning Albuquerque for Continued Growth
With this expansion, AeroVironment further cements Albuquerque’s role as a critical node in the U.S. defense and space manufacturing ecosystem, supporting national security priorities while delivering long-term economic benefits to New Mexico.
