Pentagon Shifts Missile Production to Wartime Footing

The United States Department of Defense—referred to by the Trump administration as the Department of War—announced several framework agreements on March 25, 2026, to shift the defense industrial base to a wartime footing. These measures respond to the rapid depletion of munitions stocks and interceptor missiles used by the U.S. and its allies to counter Iranian attacks, including the use of Shahed drones during Operation Epic Fury.

Under a seven-year agreement, Lockheed Martin and BAE Systems will quadruple the production of infrared seeker heads for the Terminal High Altitude Area Defense (THAAD) system. BAE Systems will execute this production at its facilities in Nashua, New Hampshire, and Endicott, New York. This follows a January deal to increase annual THAAD interceptor production from 96 to 400 units. Additionally, the Pentagon partnered with Lockheed Martin to quadruple the production of the Precision Strike Missile (PrSM), a tactical ballistic missile recently used against Iranian targets.

In a separate agreement, Honeywell Aerospace will invest $500 million to surge the manufacturing of navigation systems, Assure actuators, and electronic warfare solutions for AMRAAM missiles. These initiatives are part of a broader Arsenal of Freedom mandate led by the Munitions Acceleration Council to remove supply chain bottlenecks. The surge follows an executive order by Donald Trump directing officials to identify underperforming contractors and urging companies to prioritize production over shareholder payouts.