The US State Department has approved a potential $900m (Y139.05bn) foreign military sale to Japan, encompassing up to 150 Standard Missile 6 (SM-6) Block I missiles and associated equipment. 

RTX has been named as the principal contractor for the sale.  

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The Defence Security Cooperation Agency has officially notified Congress of the potential transaction.  

The sale package also includes non-Major Defense Equipment items such as MK 21 Mod 3 Vertical Launch System canisters, various parts, support equipment, continued EI&T support for SM-6 Block I production, engineering and technical assistance, as well as logistics and programme support. 

The SM-6 surface navy anti-air warfare missile is capable of neutralising various threats including supersonic anti-ship cruise missiles and surface ships.  

There are three primary variants of the SM-6, with Block I and Block IA designed for fleet area air defence against missile and aircraft threats. SM-6 Block IB, currently in development, is the latest upgrade to the Navy’s existing SM-6 family. 

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This sale is expected to bolster Japan’s defensive capabilities, aligning with US foreign policy and national security objectives by strengthening an ally in the Indo-Pacific region.  

It aims to enhance the Japan Maritime Self Defense Force’s (JMSDF) ability to combat current and future threats using its Aegis Weapon System-equipped vessels, contributing to regional integrated air missile defence. 

The acquisition is not anticipated to disrupt the existing military balance in the region.  

This development follows a recent contract awarded to Raytheon, a business of RTX, by the US Navy to produce SM-6 Block IA missiles, with production expected to be completed across several Raytheon facilities by 2027. 

In response to security challenges from China and North Korea, Japan has been channelling resources into the advancement of its military capabilities.

This includes the creation of advanced stealth fighter aircraft, the introduction of missiles with extended reach, and the construction of smaller, more agile naval vessels. 

For the fiscal year 2024, Japan has allocated a defence budget totalling $72.3bn. Projections indicate that from 2025 to 2029, the annual compound growth rate for this budget will exceed 4%, according to GlobalData

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