Defense firm AeroVironment, Inc. is expanding its manufacturing footprint in Albuquerque with an investment of more than $30 million. The move could create over 450 new jobs and generate $670 million in economic impact over the next 10 years.
AeroVironment said the expansion will ramp up operations across its three facilities at the Sandia Science & Technology Park. The project will fund major capital equipment purchases, increase production capacity, and grow its local workforce.
The investment is backed by a $6-million performance-based incentive package from the State of New Mexico and the City of Albuquerque under the Local Economic Development Act (LEDA). Of the total package, $5 million comes from the state and $1 million from the city.
Company officials said the expansion will strengthen domestic manufacturing of critical defense and space technologies. These technologies include directed energy systems and space-grade components.
Wahid Nawabi, chairman, president, and CEO of AeroVironment, in a statement, said the company’s growth in Albuquerque reinforces the US defense industrial base and supply chains.
AeroVironment aims to build an end-to-end, cutting-edge manufacturing campus anchored by its Space & Directed Energy Group. The division supports defense, aerospace, and commercial space programs. The defense firm currently employs more than 400 people in Albuquerque. The firm has reported almost 30 percent annual growth from 2023 to 2026.
Mary Clum, president of the company’s Space, Cyber & Directed Energy segment, said the expansion will enable more reliable delivery of advanced capabilities to customers, including US military clients.
AeroVinronment’s announcement comes after the federal government urged for the prioritization of resilient domestic supply chains and workforce readiness to boost the nation’s defense industrial base. The National Defense Industrial Strategy directed the Department of Defense to prioritize rebuilding a resilient defense industrial base.
Albuquerque Mayor Tim Keller said the project underscores the city’s position as a hub for defense innovation and advanced manufacturing. The LEDA-backed expansion will strengthen the local economy, he said.