Defense Startup's New Mexico Mega-Campus Sparks Safety Fears
AI-generated image · US National Wire
Castelion is building a hypersonic missile facility near Rio Rancho Estates, where residents fear chemical hazards and lack of transparency.
As first reported by Wired, Castelion, a defense tech startup founded in November 2022 by three former SpaceX executives, is constructing "Project Ranger," which the company describes as the largest dedicated hypersonic manufacturing production facility in the U.S. The 1,000-acre site in New Mexico is located approximately 1,000 yards from roughly 450 properties in the unincorporated community of Rio Rancho Estates.
Documents reviewed by Wired indicate the facility could pose significant chemical and fire hazards. A hazard assessment from Sandia National Labs found that in the event of a fire, buildings would simply be left to burn, potentially releasing hydrochloric acid gas into the atmosphere. Wired reports that Castelion has not answered basic safety questions and was negotiating fire safety standards while construction was already underway.
Founded as a low-cost alternative for hypersonic weapons, Castelion's primary product is the Blackbeard solid-rocket-powered missile. While the company initially aimed for a price of $384,000 per unit, recent Navy contracts have pushed the cost higher. Between January and September, the Navy awarded multiple contracts totaling $163.4 million for 50 operational prototypes—averaging $3.3 million per unit—followed by a September contract worth up to $200 million.
Castelion has seen rapid financial growth, reaching a $13 billion valuation, up from a $2.8 billion Series B valuation last year. The company has secured over $500 million in U.S. military contracts in 18 months. Wired notes that before settling in New Mexico, the company attempted to build a rocket factory in Churchill County, Nevada, under the name Pallas Industrials, but withdrew after county officials requested safety protocols and testing conditions.