US awards Lockheed Martin $53.86B contract to triple PAC-3 missile production

Published Jul 30, 07:15 AM UTC

The U.S. government has awarded Lockheed Martin a $53.86 billion contract modification to accelerate production of PAC-3 MSE interceptors, the primary missile for Patriot air defense systems. Combined with a prior $4.7 billion award, the total multiyear commitment reaches $58.62 billion. The deal aims to triple production capacity by 2030, centered on Lockheed's Camden, Arkansas facility, which will expand its workforce by 50% to about 1,850 employees. This is the second major multiyear contract under the Pentagon's Acquisition Transformation Strategy, following a $35 billion THAAD contract in June 2026. Lockheed is investing $8-9 billion of its own funds through 2030 to modernize over 20 U.S. facilities. The contract reflects urgent demand from U.S. and allied forces, including use in Ukraine and Operation Epic Fury.