U.S. Awards Lockheed Martin $35 Billion THAAD Production Contract

The United States Missile Defense Agency awarded Lockheed Martin a seven-year undefinitized contract valued at up to $35 billion to quadruple the production of Terminal High Altitude Area Defense (THAAD) interceptors. The agreement, running from March 2026 through June 2032, increases annual production from 96 to 400 interceptors. This action implements a framework agreement signed in January 2026 under the Department of War's Acquisition Transformation Strategy.

The ramp-up is part of a broader Trump administration effort to replenish missile defense stockpiles depleted by military operations against Iran and the supply of weapons to allies. To facilitate this increase, President Donald Trump recently invoked the Defense Production Act to assist suppliers.

To support the expanded output, Lockheed Martin is investing over $9 billion through 2030 in new infrastructure. Key projects include a Munitions Production Center in Troy, Alabama, a Next Generation Interceptor facility in Courtland, Alabama, and a Munitions Acceleration Center in Camden, Arkansas. Additional contract work will be performed in Dallas, Texas, and Sunnyvale, California.