Hypersonic missile business eyes Sandoval County site for major project

A manufacturer of long-range, hypersonic missiles is considering building a major facility in Sandoval County, a decision that could generate hundreds of jobs and a multi-million dollar boost to the local economy.

The company, California-based Castelion Corp., is looking at an area on a stretch of Paseo del Volcan and aims to build the facility on 1,000 acres of undeveloped land that state and local officials say could generate $659 million in its first phase of operation.

Company officials said at least two other sites outside of New Mexico are in play, but did not disclose which ones. The three sites were whittled down from 40 initial locations across a dozen states, company officials said.

It is unclear when the company could make its decision, although state officials said one could be made within the month.

State Economic Development Secretary Rob Black said the expansion could mean high-tech jobs and advanced manufacturing “that keeps New Mexico on the map for national security and economic opportunity alike.”

“This is a game changer if we win this project,” Black told the Journal. “Having a private sector company that represents really what is the next generation hypersonic missile systems building their facility here, building their equipment and their manufacturing here, will improve supply chain infrastructure for both defense-related industries (and) nondefense.”

Indeed, if Castelion chooses New Mexico, it would be seen as a big victory.

Government and company officials project that the first phase of the Castelion development would also bring with it an investment of more than $101 million and up to 300 jobs — including engineering, technician and executive roles — with annual salaries averaging over $100,000.

Aside from the proximity to the state’s national labs, as well as New Mexico Tech and Spaceport America, the Trump administration’s focus on defense funding will likely be a boon for the company as it continues to grow.

The Trump administration plans to spend more than $1 trillion nationally on defense. While the Defense Department’s budget request is slightly lower than last year’s, $150 billion in mandatory defense funding was also included in the reconciliation bill Congress passed over the summer. In New Mexico, the Department of Energy budget request asks for roughly $1 million more in New Mexico than the 2025 fiscal year.

Castelion officials said they are working with the Department of Defense to rapidly scale up the production of hypersonics, which is a priority for the U.S. as its adversaries, like China, are rapidly developing and fielding the technology.

In New Mexico, the company’s facility would manufacture and test next-generation hypersonic systems. The site would house multiple operations — from integration and manufacturing buildings to test sheds and office space — spanning anywhere from 250,000 to 300,000 square feet, company officials say.

The company, founded in 2022, was started by former SpaceX executives Bryon Hargis, Sean Pitt and Andrew Kreitz.

Tech Crunch reported in July that the company, valued in the billions, is raising a $350 million Series B led by Lightspeed Venture Partners and Altimeter Capital. The new round follows a $100 million Series A round that closed in January.

To help incentivize Castelion, the Sandoval County commission on Wednesday will look to approve a 30-year, $125 million industrial revenue bond, or IRB, package that is essentially a payment in lieu of taxes. It will allow the company to free up money that it can use for construction and during operation.

Wayne Johnson, Sandoval County manager, told the Journal on Friday that it has already secured the land needed between 29th Avenue and King Boulevard, near Paseo del Volcan, for Castelion’s operations. That includes nearly 467 acres the county purchased from Amrep, a landholder and developer, and another 550 acres it is leasing from the State Land Office. The land will ultimately be subleased to Castelion by the county, Johnson said.

Black said Friday the Economic Development Department is considering both Job Training Incentive Program funds — which incentivize businesses to make new hires by paying a portion of the cost in wages for on-site or classroom training — and Local Economic Development Act money. He did not say how much either incentive would amount to. The state will also expedite additional support for road infrastructure along Paseo del Volcan, he said.

“These are investments that we were planning to do, but this creates the justification to expedite those investments for better road service for the whole community, but in particular, for the development site as well,” Black said.

Castelion officials said the tip-to-tail production of these hypersonics is an “inherently safe operation” and would not pose a risk to the community. Specifically, the project and site have to go through a Defense Department certification, and the plan has already been reviewed by Sandia National Laboratories and Los Alamos National Laboratory, they said.

The project has been in the works for some time, with organizations like Albuquerque Regional Economic Alliance and Sandoval Economic Alliance playing a key role in helping the company see New Mexico as a viable location for its operation.

While the first phase is expected to have an immediate impact — company officials are targeting the third quarter of 2026 for initial operating capability — Castelion’s presence could grow to more than 1,000 workers over the next decade.

Johnson compared the economic effect of this project to that of Intel when it first came to the area, saying this is “the type of game-changing impact” that could transform the area.

“The county in particular, we’ve been able to meet all of the objectives to make this thing a reality,” Johnson said. “I believe we’ve got a good track record with the company, and I believe that puts us in a great position.”