Lockheed Martin has entered a partnership with the US Department of Defense to significantly boost production of THAAD interceptors, reflecting growing demand for advanced missile-defence systems among the US and its allies.
A new framework agreement will lift annual THAAD output from 96 to approximately 400 interceptors, representing a more than fourfold increase in production capacity.
THAAD is a ground-based missile-defence system designed to intercept short-, medium-, and intermediate-range ballistic missiles in their terminal phase, delivering high-altitude protection against incoming threats.
The system’s interceptor uses hit-to-kill technology, eliminating targets through direct collision rather than explosive warheads, and complements lower-tier defences such as the Patriot PAC-3 within a layered air and missile defence network.
To enable this production surge, Lockheed Martin will construct a Munitions Acceleration Center in Camden, Arkansas, equipped with advanced robotics and digital manufacturing systems to support THAAD, PAC-3, and other missile programmes.
The facility will also support workforce expansion and long-term industrial resilience.
Over the next three years, Lockheed Martin plans multibillion-dollar investments to modernise or expand more than 20 facilities across states including Arkansas, Alabama, Florida, Massachusetts, and Texas.
Since 2016, the company has expanded output of six key munitions by over 220 percent, with further increases in production expected through the end of the decade.
Recent contract awards highlight Lockheed Martin’s growing footprint across US defence programmes spanning air, missile, space, and maritime sectors.
In September 2025, the US Army awarded the company a $9.8 billion contract for 1,970 PAC-3 MSE interceptors, the largest Patriot missile order to date.
In January 2026, this was followed by a Pentagon agreement to raise annual PAC-3 MSE production from about 600 to 2,000 interceptors over a seven-year period.
Separately, in October last year, Lockheed Martin Space received a $647 million contract modification for Trident II missile production and sustainment, with options that could increase the total value to around $746 million, with work scheduled through 2030.
