Lockheed Martin signs framework to raise THAAD interceptor production to 400 per year

Lockheed Martin signed a framework agreement with the Department of War to increase annual Terminal High Altitude Area Defense (THAAD) interceptor production from 96 units to 400 units per year.

The agreement followed an earlier framework this month addressing PAC-3® Missile Segment Enhancement (MSE) interceptors and set a production escalation timeline that the companies said would unfold over the next seven years, with an initial contract award expected in the final fiscal year 2026 Congressional appropriations and other sources of funding.

Lockheed Martin broke ground on a new Munitions Acceleration Center in Camden, Ark., intended to prepare a workforce to build THAAD, PAC-3 and other capabilities using advanced manufacturing, robotics and digital technologies. The company said it has more than 340,000 square feet of dedicated operations space for THAAD and more than 2,000 U.S. employees currently supporting the program.

The company reported it had invested more than $7 billion since President Donald Trump’s first term, including approximately $2 billion dedicated to accelerating munitions production, and planned a multibillion-dollar investment over the next three years to expand production and build and modernize more than 20 facilities in Arkansas, Alabama, Florida, Massachusetts and Texas. Lockheed Martin also said it was creating tens of thousands of jobs across manufacturing, engineering and skilled trades to meet higher production demand.

“We are committed to further building on the Department of War's vision for advancing acquisition reform with additional framework agreements for the critical munitions needed by the U.S. military and our allies. Today's agreement to quadruple THAAD production means we will have more interceptors available than ever before to deter our adversaries,” said Lockheed Martin Chairman, President and CEO Jim Taiclet.

The company planned a multibillion-dollar investment over the next three years and expected an initial contract award on the THAAD framework agreement in the final fiscal year 2026 Congressional appropriations and other sources of funding.