The Pentagon has announced the award of a $24.4 billion contract for Raytheon to accelerate production of SM-6 missiles as Washington works to replace the large amount of munitions expended during the Iran war, AFP reports.

The missiles are “critical anti-air and anti-surface warfare munition. This five-year agreement, with two additional option years, will drive faster production,” the Pentagon said in a statement.

The deal “provides the defence industry with the long-term predictability needed to expand workforce capacity and secure critical supply chains,” the Pentagon added.

Raytheon confirmed in a statement Wednesday that their SM-6 “has been successfully fired from various US Navy ship-based platforms and launchers on land,” calling it a “combat-proven weapon.”

The weapons-maker also acknowledged increased efforts to meet demand.

“By continuously investing in our operations and facilities, we are removing constraints and boosting capacity to ensure we deliver this critical capability our sailors depend on,” Raytheon President Phil Jasper said in the statement.