The US Missile Defense Agency has awarded Lockheed Martin a $2-billion contract to produce additional Terminal High Altitude Area Defense (THAAD) interceptors. The work, spanning sites in Dallas, Sunnyvale, Troy, and Camden, will continue through December 1, 2029.
The contract follows the depletion of approximately 25% of the US THAAD interceptor stockpile during the recent 12-day conflict between Israel and Iran, according to CNN. Defense officials have since emphasized the urgent need to accelerate production. “Stockpiles are dropping. We need more. We need them faster,” a former US defense official said.
THAAD is a mobile missile defense system capable of intercepting short- to intermediate-range ballistic threats using hit-to-kill technology. Each battery comprises six truck-mounted launchers carrying a total of 48 interceptors, operated by about 100 personnel. Each missile interceptor costs around $12 million.
With over 900 interceptors delivered so far, THAAD plays a key role in the US’s layered defense strategy, complementing systems like Patriot. It is deployed in critical regions including South Korea, Guam, the UAE, Saudi Arabia, and Israel to counter regional threats.
