Dozens of state and local officials made the expedition on Wednesday to a windswept dirt lot west of Rio Rancho for the groundbreaking of Project Ranger, a 1,000-acre solid rocket motor manufacturing campus that will be the largest in the United States, according to Castelion executives, and will produce components for hypersonic missiles.
Gov. Michelle Lujan Grisham joined executives from Castelion Corporation and officials from the state Economic Development Department for the ceremony on the unincorporated Sandoval County site, located about 2.9 miles west of the Rio Rancho city limits.
The California-based defense contractor selected Sandoval County in November after a nationwide search, ending months of speculation and community debate over safety, environmental impacts and economic benefits.
“We feel great. We’re really excited,” Andrew Kreitz, co-founder and chief financial officer of Castelion, told the Sandoval Signpost before the ceremony. “I think we pride ourselves in Castelion and moving really, really fast. Our customers demand that we move fast, because the capability that we deliver is urgent.”
Kreitz praised the City of Rio Rancho, Sandoval County and state partners for matching the company’s pace, noting he didn’t know where else they could have broken ground so quickly or made such rapid progress.
The project is projected to create more than 300 high-paying jobs with an average salary of $100,000 and generate more than $650 million in economic output over the next decade. The company expects to invest more than $100 million over the first four years.
“This is economic development in New Mexico — high-tech companies bringing high-paying jobs,” said Gov. Michelle Lujan Grisham. “Castelion chose our state because we have the workforce, the expertise and the infrastructure they need to succeed.”
Founded in late 2022 by former SpaceX employees, Castelion has raised about $450 million in private capital and secured approximately $200 million in contracts. The company aims to address what executives describe as a critical shortage in U.S. manufacturing capacity for long-range strike weapons.
“Without exaggeration, they are 20 years ahead of us,” Kreitz said of adversaries like China and Russia in hypersonic capabilities during a December community meeting.
The facility will mix dry ingredients, including ammonium perchlorate with aluminum powder and other materials into a slurry, cast the mixture into metal tubes, cure them at low temperatures, then assemble the motors with electronics, fins and other components into finished missiles. No missiles will be launched from the site; flight testing will occur at Department of Defense ranges.
“I’m pleased to welcome the groundbreaking of Castelion’s new manufacturing facility in Sandoval County that will strengthen our national security, grow our state’s economy, and create over 300 permanent jobs that New Mexicans can build their families around,” U.S. Sen. Martin Heinrich said in a statement. “This is a great example of what New Mexico does best: developing cutting-edge science and technology and manufacturing it right here in our state.”
Army leadership emphasizes urgency of scale
U.S. Army Lieutenant General Francisco J. Lozano, who leads the Army’s efforts on hypersonic weapons and rapid acquisition, stressed the critical national security need that Project Ranger will address.
“Let me be direct. China has hypersonic missiles in the field today. Russia has used them in combat over Ukraine,” Gen. Lozano said. “We are not in a position to wait for perfect, we need operational capability, and we need it soon.”
He framed the groundbreaking as more than just a ceremony, but as “a statement about urgency, about scale and about how the United States Army intends to deter conflict, and, if necessary, win it.” Gen. Lozano explained that the primary challenge for the defense industry is not engineering, but “manufacturing at scale” to ensure credible deterrence.
“Deterrence is not just about having the best weapon,” he continued. “Deterrence is about having enough of them available, replenishable and ready when it matters. That is why Project Ranger matters. That is why Castelion matters. That isn’t just a facility. It is the production engine the war fighter has been waiting for, producing the capability our war fighters deserve.”
Gen. Lozano also acknowledged New Mexico’s legacy in defense innovation, noting that while White Sands Missile Range is where the military tests and proves capability, Project Ranger will be where the nation manufactures that capability at scale.
“I am very excited and grateful for Castelion to be incredible partners with us to help our nation stay ahead of our competitors when it comes to national security,” said New Mexico State Sen. and U.S. Air Force veteran Jay Block. “This company will be critical to catch up and pass China and Russia in hypersonic technologies. This is a race we cannot lose.”
Community concerns persist
While officials were touting the importance of the project at the groundbreaking, it has sparked significant debate since Castelion first expressed interest in the site last year. Hundreds of residents packed community meetings in October and December to question safety measures, environmental impacts and noise from static fire tests of rocket motors.
Many of the community’s earliest concerns relate to the storage and testing of explosives for the development of rocket-fired missiles.
The proposed facility would manufacture solid rocket booster motors and conduct static motor tests in controlled settings.
“They’re not making bombs,” Sandoval County Manager Wayne Johnson told the Signpost. “What they’re manufacturing on site is the motor.”
Still, technical safety documents show that emergency explosion scenarios could affect structures up to five miles away. The site sits 2.9 miles from Rio Rancho’s Northern Meadows neighborhood, with safety zones that overlap with homes, schools and parks.
Records reviewed by the Signpost indicate that the population impact data includes 5,933 buildings/structures within a 5-mile radius. Nearby residential subdivisions (Northern Meadows, Cielo Norte, North Hills, Los Pinons, Camino Crossing), two fire stations, two elementary schools and nine parks are within a 5-mile radius.
“There are a lot of regulations and requirements that already exist. We’re working very hard to partner with first responders and have resources on site to make sure that even in that kind of worst-case scenario, we’re not creating a situation where it’s going to spread,” Kreitz told the Signpost. “The other question that we’ve heard from the community is, let’s say there is a fire, let’s say there is a plume of smoke, does that affect the surrounding area? So we’re doing a study right now with Sandia to evaluate what the consequences of that would be, studies not done, but if there, if there is risk, there are steps we can take, whether it’s sort of reducing the volume of material in a single building, like there are things that we can do to mitigate it, and we’re absolutely going to do that.”
Kreitz has emphasized that federal regulations require substantial setback distances between buildings on the site. He said static fire tests lasting 10 to 30 seconds would generate noise comparable to a lawn mower at the distance of Northern Meadows and would only occur during business hours.
Water cannot be used to fight fires involving ammonium perchlorate or aluminum powder. In such scenarios, personnel would evacuate and let fires burn while preventing spread to other structures, Kreitz said.
Residents have also raised concerns about dust, groundwater contamination and traffic on already-congested Highway 550. The state plans to extend Paseo del Volcan west to the facility, providing a direct route that bypasses residential areas.
A study with Sandia National Labs evaluating potential plume impacts from a facility fire is still underway, Kreitz told the Sandoval Signpost.
“If there is risk, there are steps we can take, whether it’s sort of reducing the volume of material in a single building, there are things that we can do to mitigate it, and we’re absolutely going to do that,” Kreitz said.
Incentives and accountability
State and local governments approved a $10 million incentive package in October under the Local Economic Development Act, with $5 million from the state, $4 million from Sandoval County and up to $1 million from Rio Rancho. The money will fund land acquisition and infrastructure upgrades.
Officials said the agreement includes full clawbacks if the company doesn’t meet job creation and safety benchmarks. Sandoval County also approved $125 million in industrial revenue bonds for the project in August.
The Rio Rancho City Council required a memorandum of understanding establishing which agency has jurisdiction over emergency response before releasing city funds, following concerns raised by Fire Chief James Wenzel about the facility’s high-hazard classification.
The company expects to have the facility operational in 2027. Site clearing has already begun, with construction footings visible at the groundbreaking site.
Kreitz encouraged community members with questions or concerns to reach out directly.
“We want to hear from the community,” Kreitz said. “If there are specific things, whether it’s just questions, or whether it’s things that we can do better, we want to hear about it.”
Contact information is available at infocastelion.com.