Lockheed Martin and US Department of War sign framework agreement to quadruple THAAD Interceptor production capacity.
~
Press Release, Camden AR, 29 January 2026: Lockheed Martin signed a framework agreement with the Department of War (DoW) to quadruple the production of Terminal High Altitude Area Defense (THAAD) interceptors, from 96 to 400 interceptors per year. This announcement builds on the first-of-its-kind agreement signed between the parties earlier this month to accelerate production of PAC-3 Missile Segment Enhancement (MSE) interceptors.
Also in support of its production ramp activities, Lockheed Martin will break ground today on a new Munitions Acceleration Center in Camden, Ark. This world-class facility will prepare the workforce of the future to build THAAD, PAC-3 and other capabilities using advanced manufacturing, robotics and digital technologies.
The Big Picture: The continued partnership between the DoW and Lockheed Martin will increase production of THAAD interceptors from its current 96 per year over the next seven years. Lockheed Martin will work with the US government toward an initial contract award on the THAAD framework agreement, expected in the final fiscal year 2026 Congressional appropriations and other sources of funding.
Additional Context
- Multibillion-Dollar Investment: Lockheed Martin has invested more than $7 billion since President Donald Trump’s first term to expand capacity for priority systems, including approximately $2 billion dedicated to accelerating munitions production. Lockheed Martin is planning a multibillion-dollar investment over the next three years to expand production and build and modernise more than 20 facilities in Arkansas, Alabama, Florida, Massachusetts and Texas. This includes upgrading existing facilities and incorporating advanced manufacturing techniques, production lines, tooling and plant layouts to meet urgent production demand.
- Timeline: The THAAD framework agreement is the second signed between Lockheed Martin and the DoW, with the first of its kind for the entire industry signed earlier this month for PAC-3 MSE interceptors.
- Manufacturing Details: Lockheed Martin has more than 340,000 square feet of dedicated operations space in the US for THAAD, with more than 2,000 US employees supporting the program currently.
- American Job Growth: Lockheed Martin is now creating tens of thousands of high-quality American jobs across manufacturing, engineering and skilled trades to meet rising production demands.
- 10 Years of Increased Deliveries: Since 2016, Lockheed Martin has increased deliveries of six critical munitions by more than 220% and plans an additional 245%+ increase to support delivery of PAC-3 and THAAD capability. This has resulted in manufacturing jobs growth of more than 60% since President Trump’s first term, with additional growth of ~50% projected by 2030 to sustain higher production rates.
“We are committed to further building on the Department of War’s vision for advancing acquisition reform with additional framework agreements for the critical munitions needed by the US military and our allies. Today’s agreement to quadruple THAAD production means we will have more interceptors available than ever before to deter our adversaries,” said Lockheed Martin Chairman, President and CEO Jim Taiclet.
~
