Image: Lockheed Martin
The US government has awarded Lockheed Martin a $35 billion, seven-year contract to quadruple production of Terminal High Altitude Area Defense (THAAD) interceptors, as per a recent press statement. The undefinitized contract action (UCA) ranks among the first major awards issued under the Department of War’s Acquisition Transformation Strategy.
The award formalises a framework agreement signed in January 2026. It delivers the long-term procurement signal needed to scale production and strengthen the US defence industrial base. Lockheed Martin was the first company to sign such a framework agreement under the strategy.
THAAD is the only US system designed to intercept ballistic threats both inside and outside the atmosphere. The system has seen active deployment under Operation Epic Fury, continuing to defend forces and key infrastructure against evolving threats.
Recent months have seen rapid expansion of Lockheed Martin’s production infrastructure. The company broke ground on a Munitions Production Center in Troy, Alabama, weeks before the contract award. It has also opened a Next Generation Interceptor facility in Courtland, Alabama, and a Munitions Acceleration Center in Camden, Arkansas. These sites form part of a $9 billion investment programme through 2030, spanning more than 20 new or modernised facilities nationwide.
Tim Cahill, president of Lockheed Martin Missiles and Fire Control, commented: “This award reflects our shared vision with the Department of War to strengthen America’s Arsenal of Freedom through a transformational shift to multiyear procurement.”
The THAAD contract builds on a $4.7 billion award issued in April for accelerated PAC-3 Missile Segment Enhancement (MSE) production. The Department of War has signed framework agreements for the THAAD interceptor, PAC-3 MSE, and Precision Strike Missile (PrSM) since January 2026.
Read more on Lockheed Martin’s website
