Lockheed Martin to Quadruple THAAD Interceptor Production for US and Allies
Lockheed Martin and the US Department of Defense have agreed to expand production of Terminal High Altitude Area Defense (THAAD) interceptors to meet growing global demand for missile defense.
Under a new framework agreement, the two parties will push annual THAAD interceptor production from 96 to 400 — a more than fourfold increase — over the coming years as part of broader efforts to strengthen US and allied air defenses.
THAAD is a ground‑based missile defense system designed to shoot down short, medium, and intermediate‑range ballistic missiles during their terminal phase, before they can strike their targets.
The interceptor uses hit‑to‑kill technology, colliding with incoming missiles at high speed to destroy them. The system complements other layered air defense systems, such as Patriot PAC‑3 missiles, by providing higher‑altitude engagement.
Lockheed Martin will also begin construction on a new Munitions Acceleration Center in Camden, Arkansas, intended to modernize manufacturing and integrate robotics and digital technologies into production lines for THAAD, PAC‑3, and other systems.
The company said the facility will support future workforce growth and advanced manufacturing processes to sustain higher production rates.
Lockheed Martin said it plans multibillion‑dollar investments over the next three years to expand or modernize more than 20 facilities across Arkansas, Alabama, Florida, Massachusetts, and Texas.
Since 2016, the company reports it has increased deliveries of six key munitions by more than 220 percent and anticipates further growth through 2030.
Lockheed’s Recent High-Value Contracts
Lockheed Martin has secured several high-value US defense contracts in recent years, broadening its portfolio across aircraft, missile systems, space, and naval programs.
In September 2025, the US Army awarded Lockheed Martin a $9.8-billion contract for 1,970 PAC‑3 Missile Segment Enhancement (MSE) interceptors, marking the largest Patriot missile order in company history.
A January 2026 agreement between Lockheed and the Pentagon aims to raise annual PAC‑3 MSE interceptor production from about 600 to 2,000 units over seven years.
Lockheed Martin Space was awarded a $647-million modification for Trident II missile production and deployed systems support in October last year, with options potentially raising the value to about $746 million. Completion is expected by 2030.
