Dive Brief:
- Lockheed Martin’s missiles and fire control division was awarded on Wednesday a multiyear $35.3 billion contract from the U.S. Department of Defense to quadruple production of the company’s Terminal High Altitude Area Defense interceptors.
- Under the contract through DOD’s Missile Defense Agency, Lockheed will produce THAAD missile rounds at its facilities in Dallas, Sunnyvale, California; Troy, Alabama; and Camden, Arkansas, according to the agency.
- The contract expands on the DOD agreement the weapons maker signed in January to boost THAAD production at an annual rate of 96 to 400 over the next seven years.
Dive Insight:
The THAAD contract was awarded on the same day that President Donald Trump met with defense company executives on Wednesday, urging them to accelerate production as the U.S. weapons stockpile depletes, The New York Times reported. The government contractors told Trump they wanted more funding to expand their production.
About $843 million in fiscal 2026 procurement funds are being “obligated at the time of the award” toward Lockheed’s latest contract, DOD said.
“In exchange for longer-term orders, defense contractors are now investing their own private capital in new manufacturing plants and assembly lines,” DOD Secretary Pete Hegseth said in a DOD post on Tuesday. “Our warfighters will get the weapons, platforms and technology they need ahead of schedule — tomorrow's weapons today, not yesterday's weapons tomorrow.
Lockheed’s procurement contract is implemented through DOD’s Acquisition Transformation Strategy, according to Lockheed’s press release. The agency’s strategy aims to increase and accelerate production capacity for key systems, weapons and munitions for the U.S. military and prioritize the country’s allies and partners.
Additionally, the contract is among the first agreements being put into action under the initiative, according to Lockheed’s press release. It also displays the company’s commitment to supporting the “Arsenal of Freedom,” a Trump administration blueprint for rebuilding the defense industrial base under the Acquisition Transformation Strategy.
The contract follows Lockheed's groundbreaking for a Munitions Production Center in Troy, Alabama, on May 21. The company has invested over $1 billion dollars in the expansion, President and CEO Jim Taiclet said in a statement.
Dubbed Building 47, the facility will add 87,000 square feet of production space dedicated to THAAD interceptors, a weapons system that impacts and destroys missiles before they reach their intended targets. It’s also designed to intercept threats inside and outside the atmosphere.
The MPC will also house the future work of its Next Generation Interceptor, which is currently in development. DOD’s Missile Defense Agency selected Lockheed in April 2024 to develop the NGI.
The expansion is part of Lockheed’s more than $9 billion investment to meet munitions demand through 2030, which includes building or upgrading over 20 facilities across the United States, according to the press release.
Furthermore, the upcoming plant and contract will create “tens of thousands” of jobs across Lockheed’s manufacturing, engineering and skilled trades and boost its supply chain. Lockheed did not respond to requests for comment on how many jobs it will create.
Lockheed has been inking deals and forming partnerships for research and development and ramping up production. Last week, the company signed an agreement with General Motors’ defense subsidiary to build up domestic manufacturing and the defense industrial base. The two companies did not disclose their plans, but GM Defense President Steve duMont said they will identify initial projects to pursue over the coming weeks.
