US awards Lockheed Martin $35B to quadruple THAAD interceptor production
On June 24, 2026, the U.S. Department of War and Missile Defense Agency awarded Lockheed Martin a $35 billion, seven-year contract to quadruple production of THAAD interceptors from 96 to 400 annually. The deal, part of the Pentagon’s Acquisition Transformation Strategy, aims to replenish depleted munitions stockpiles after the Iran war and other conflicts. Lockheed is investing over $9 billion in new factories in Alabama, Arkansas, and other states, with work through June 2032.
Cross-source coverage
Wire timeline
USA: THAAD Production Will Be Quadrupled
The US government awarded Lockheed Martin a seven-year contract worth up to $35 billion to quadruple production of THAAD interceptor missiles. This is one of the first major multi-year procurement programs under the Pentagon's new acquisition strategy, and marks a shift from framework agreements to concrete execution. The contract is driven by the heavy use of THAAD systems in the Middle East during the war with Iran, which significantly strained US, Israeli, and Gulf state inventories. Reports indicate accelerated production of THAAD components, including seeker heads, due to intensive combat operations. The THAAD system uses a 'hit-to-kill' kinetic energy principle to destroy short- to intermediate-range ballistic missiles both inside and outside the atmosphere.
CPM Defence Network – News: Verteidigung und WehrtechnikU.S. Awards Lockheed Martin $35 Billion Contract to Quadruple THAAD Production
The U.S. government has awarded Lockheed Martin a seven-year contract worth up to $35 billion to quadruple production of interceptor missiles for the THAAD air defense system. This is one of the first major multi-year procurement programs under the Pentagon's new acquisition strategy. The order is driven by intensive deployment of THAAD systems in the Middle East during the war with Iran, which has significantly strained U.S., Israeli, and Gulf state missile defense inventories. Reports indicate the Pentagon accelerated production of THAAD components, including seeker heads, due to high combat consumption. THAAD is a state-of-the-art, transportable system that uses the hit-to-kill principle to intercept ballistic missiles inside and outside the atmosphere.
CPM Defence Network – News: Verteidigung und WehrtechnikPentagon Awards Lockheed Martin $35 Billion Deal to Restock THAAD Interceptors
The Pentagon has awarded Lockheed Martin a seven-year contract worth up to $35 billion to produce hundreds of Terminal High Altitude Area Defense (THAAD) interceptors annually, aiming to replenish depleted U.S. munitions stockpiles. The Missile Defense Agency announced the award on Wednesday, with Lockheed Martin receiving an initial $842.9 million. The deal underscores critical defense priorities amid ongoing global tensions and the need to sustain missile defense capabilities.
Just In NewsLockheed Martin Wins Over $35 Billion Contract to Quadruple THAAD Production
Lockheed Martin has secured a multiyear contract valued at over $35 billion to dramatically increase production of the Terminal High Altitude Area Defense (THAAD) system, scaling annual output from 96 to 400 interceptors. The contract comes amid growing concerns among U.S. lawmakers about the sufficiency of the nation's munitions stockpile, particularly in light of ongoing global threats and supply chain challenges. The production ramp-up is expected to enhance the U.S. and allied missile defense capabilities against ballistic missile threats. The announcement was made on June 25, 2026, as defense policymakers emphasize the need to rebuild and expand weapons inventories.
Military TimesLockheed Martin wins over $35 billion contract to quadruple THAAD production
Lockheed Martin has been awarded a seven-year contract worth over $35 billion by the U.S. Missile Defense Agency to dramatically increase production of Terminal High Altitude Area Defense (THAAD) interceptors. The contract will quadruple annual production from 96 to 400 interceptors, addressing concerns over depleted U.S. munitions stockpiles following the war in Iran and other conflicts. A May CSIS report warned that restoring pre-war stockpile levels will take at least three years, creating a 'window of vulnerability' for a potential Western Pacific conflict. The contract is one of the first major multiyear procurement awards under the Pentagon's Acquisition Transformation Strategy, aimed at reforming the defense industrial base for faster, lower-cost delivery. Lockheed has broken ground on new production facilities in Troy, Alabama and Camden, Arkansas as part of a $9 million investment through 2030. Work will be performed across Dallas, Texas; Sunnyvale, California; Troy, Alabama; and Camden, Arkansas, from March 2026 through June 2032. The award obligates over $842 million in fiscal 2026 procurement funds. Lockheed has also signed agreements this year to boost production of PAC-3 MSE interceptors and Precision Strike Missiles.
Defense NewsLockheed Martin wins over $35 billion contract to quadruple THAAD production
Lockheed Martin has been awarded a seven-year contract worth over $35 billion by the U.S. Missile Defense Agency to dramatically increase production of Terminal High Altitude Area Defense (THAAD) interceptors. The contract aims to quadruple annual production from 96 to 400 interceptors, responding to concerns from U.S. lawmakers about depleted munitions stockpiles following the Iran war and other conflicts. A CSIS report warns that restoring pre-war stockpile levels will take at least three years, creating a 'window of vulnerability.' The contract is part of the Pentagon's Acquisition Transformation Strategy to accelerate deliveries at lower cost. Lockheed has broken ground on new production facilities in Troy, Alabama and Camden, Arkansas, with work to be completed across four cities through June 2032. Fiscal 2026 procurement funds of over $842 million are obligated at award time. The company also secured agreements this year to increase production of PAC-3 MSE interceptors and Precision Strike Missiles.
Military TimesLockheed Martin wins over $35 billion contract to quadruple THAAD production
The U.S. Missile Defense Agency awarded Lockheed Martin a seven-year contract worth over $35 billion to quadruple production of Terminal High Altitude Area Defense (THAAD) interceptors from 96 to 400 per year. The contract, announced June 24, 2026, is one of the first major multiyear procurement deals under the Pentagon's Acquisition Transformation Strategy, aimed at accelerating deliveries and reducing costs. Work will be performed across four U.S. cities, including new production centers in Troy, Alabama, and Camden, Arkansas. The ramp-up follows stockpile depletion after the Iran war, with a CSIS report warning of a three-year recovery window and potential vulnerability in a Western Pacific conflict. Fiscal 2026 procurement funds of over $842 million are obligated at award. Lockheed Martin has also secured agreements to increase production of PAC-3 MSE interceptors and Precision Strike Missiles.
Defense NewsUS Government Awards Lockheed Martin $35 Billion Contract to Quadruple THAAD Interceptor Production
The US Department of War awarded Lockheed Martin a seven-year contract worth up to $35 billion to quadruple production of Terminal High Altitude Area Defense (THAAD) interceptors through 2030. Announced on June 24, 2026, this contract is part of a broader Acquisition Transformation Strategy shifting from limited framework agreements to multiyear procurement, ensuring long-term demand and industrial base stability. The THAAD system uses hit-to-kill technology to intercept short- to intermediate-range ballistic missiles inside and outside the atmosphere. The award builds on a January framework agreement and follows Lockheed Martin's recent expansions, including a new Munitions Production Center in Alabama and facilities in Arkansas. It also complements a March agreement with BAE Systems to quadruple production of THAAD seeker components. The move aims to strengthen national and allied missile defense capabilities at unprecedented speed and scale.
Army TechnologyUS awards Lockheed Martin $35 billion contract to quadruple THAAD interceptor production
On June 24, 2026, the U.S. Department of War awarded Lockheed Martin a $35 billion, seven-year contract to quadruple production of the Terminal High Altitude Area Defense (THAAD) interceptor. The contract converts a January 2026 framework agreement into a fully executed procurement, part of the Department's Acquisition Transformation Strategy. The deal provides long-term production certainty, enabling over $9 billion in Lockheed facility investments through 2030, including new factories in Troy, Courtland, and Camden, Alabama, and Arkansas. THAAD is a hit-to-kill system capable of intercepting ballistic missiles inside and outside the atmosphere. Its combat record includes defending forces during Operation Epic Fury against Iran in 2026. The urgency stems from lessons learned when Israel's interceptor stocks ran low during Iranian missile attacks in 2024-2025. The contract is structured as an undefinitized contract action to allow immediate work start.
The Defence Blog – Military and Defense News