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Electro Optic Systems has announced the signing of a binding conditional agreement for the manufacture and sale of a 100kW high-energy laser weapon with a Republic of Korea customer.
The announcement, made on 15 December via an ASX statement, includes the establishment of a joint venture between EOS and the customer to develop and supply the Korean market with 100kW high-energy laser weapons.
“The contract requires production and delivery of the product. The product will be manufactured at EOS’ new Laser Weapon Manufacturing Facility in Singapore,” according to the EOS statement.
“The total amount payable to EOS under the contract is $120 million. The conditions of the contract include the payment by the customer of the initial deposit (US$18 million), the customer procuring the issuance of a letter of credit for the remaining amount of the contract, and the customer inspecting and being satisfied with EOS’ Singapore facility. The customer expects these to be completed prior to 31 January 2026.
“The contract is otherwise subject to customary terms, including milestone payments for the balance of the contract income and full refund entitlements for payments made in the event of product non-performance. Subject to satisfaction of the conditions, the contract is expected to be fulfilled after scheduled delivery of the product to Korea at the end of 2027 and subsequent demonstrations.
“Under the contract, and subject to satisfaction of the conditions and obtaining relevant regulatory approvals, EOS is obligated to provide a licence for the Korean market to the joint venture, for intellectual property relating to the 100kW high-energy laser weapon.
“The consideration due under the contract is payable after establishment of the Korean joint venture and achievement of product demonstration performance milestones.”
The EOS laser weapon development program included three years of field testing and numerous firing trials of the laser in close collaboration with customers. This conditional contract represents EOS’ second export order for a 100kW class laser defence system and follows a first export order to a western European customer, announced on 5 August this year.
