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The Pentagon has awarded Lockheed Martin a contract worth up to $35 billion over seven years to significantly expand production of Terminal High Altitude Area Defense (THAAD) interceptors, part of the Trump administration’s effort to rebuild U.S. missile stockpiles and strengthen the nation’s defense industrial base.
The Missile Defense Agency’s contract action is expected to increase THAAD interceptor production from about 96 missiles annually to as many as 400 per year, according to Lockheed Martin.
“This award reflects our shared vision with the Department of War to strengthen America’s Arsenal of Freedom through a transformational shift to multiyear procurement,” said Tim Cahill, president, Lockheed Martin Missiles and Fire Control. “This new approach propels our efforts to strengthen the defense industrial base, expand production and deliver capabilities to the American warfighter at unprecedented speed and scale.”
The agreement follows a separate $4.7 billion contract awarded in April to accelerate production of Patriot Advanced Capability-3 Missile Segment Enhancement interceptors, reflecting a broader push to expand U.S. missile defense capabilities.
President Donald Trump met on Wednesday with senior military leaders and defense industry executives at the White House to encourage manufacturers to increase production capacity, according to The Wall Street Journal. The administration has promoted multiyear procurement contracts designed to give defense companies greater certainty for long-term investments.
THAAD is one of the U.S. military’s most advanced missile defense systems, designed to intercept ballistic missiles both inside and outside the Earth’s atmosphere. Pentagon budget documents cited by the Journal estimate that each interceptor costs more than $12 million.
Lockheed Martin said the new award activates a framework agreement signed with the Defense Department in January, providing the long-term demand needed to expand production and strengthen the nation’s defense manufacturing base.
The company recently broke ground on a new 87,000-square-foot munitions production facility in Troy, Alabama, as part of more than $9 billion in planned investments through 2030. Lockheed has also expanded operations in Courtland, Alabama, and Camden, Arkansas, to meet increasing demand from the United States and allied nations.
mp The contract will still require approval of additional funding from Congress before a final agreement is completed. Work under the contract will be performed in Texas, California, Alabama and Arkansas.