The U.S. Army has selected Hanwha Defense USA, a unit of South Korea’s Hanwha Aerospace, to supply six Mobile Tactical Cannon prototypes under a potential $262.9 million contract.
The agreement includes an option for an additional 12 systems, with delivery contingent on successful testing by soldiers. If approved, the Hanwha system would replace the M777 towed artillery in selected units. The prototypes will undergo evaluation to determine field deployment.
The contract announcement follows prior purchases of Hanwha’s ground systems, including K9 self-propelled howitzers, by Australia, Norway, and Turkey. The deal expands Hanwha’s presence in the U.S. defense market, a sector where it has increasingly competed against domestic and international suppliers.
Shares of Hanwha Aerospace surged as much as 9.5% in early trading on Wednesday, outpacing the broader market. The KOSPI index, however, declined 6.7% during the same session, reflecting broader investor caution amid global equity volatility.
The U.S. Army’s selection process prioritized mobility and firepower for mobile artillery systems, aligning with modern battlefield requirements. The Mobile Tactical Cannon is designed to enhance operational flexibility and rapid deployment capabilities for artillery units.
