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Lockheed Martin has received a U.S. government contract worth up to $35 billion over seven years to significantly increase production of Terminal High Altitude Area Defense (THAAD) interceptors, marking one of the largest missile defense procurement awards in recent years.

The contract is intended to more than quadruple annual THAAD interceptor production, increasing output from approximately 96 interceptors per year to around 400.

The award is among the first major multiyear procurement contracts issued under the Department of War’s Acquisition Transformation Strategy, which aims to strengthen the U.S. defense industrial base and accelerate weapons production.

The contract implements a THAAD framework agreement signed between the U.S. government and Lockheed Martin in January. Company officials said the long-term agreement provides the production certainty needed to expand manufacturing capacity and deliver missile defense systems more quickly to U.S. forces and allied nations.

THAAD is a key component of the United States’ missile defense architecture. The system is designed to intercept and destroy ballistic missiles during their terminal phase of flight and is capable of engaging targets both inside and outside the Earth’s atmosphere.

According to Lockheed Martin, THAAD has demonstrated its effectiveness in operational deployments and remains a critical layer of defense against evolving missile threats.

The award comes as Lockheed Martin continues a major expansion of its missile production infrastructure across the United States.

The company recently broke ground on a new Munitions Production Center in Troy, Alabama, as part of a broader investment plan exceeding $9 billion through 2030. Lockheed Martin said the investment includes more than 20 new or modernized facilities nationwide to increase production capacity and meet growing demand for missile defense systems and munitions.

Lockheed Martin has also opened the Next Generation Interceptor facility in Courtland, Alabama, and the Munitions Acceleration Center in Camden, Arkansas, as part of efforts to expand manufacturing capabilities.

Support for Broader Modernization Efforts

Lockheed Martin said the THAAD contract reflects a broader shift toward multiyear procurement programs designed to provide long-term production stability for defense manufacturers.

“This award reflects our shared vision with the Department of War to strengthen America’s Arsenal of Freedom through a transformational shift to multiyear procurement,” said Tim Cahill, president of Lockheed Martin Missiles and Fire Control.

“This new approach propels our efforts to strengthen the defense industrial base, expand production and delivery capabilities to the American warfighter at unprecedented speed and scale.”

The company noted that since January, framework agreements have also been established to expand production of PAC-3 Missile Segment Enhancement (PAC-3 MSE) interceptors and the Precision Strike Missile (PrSM). In April, Lockheed Martin received a separate $4.7 billion contract to continue accelerated production of PAC-3 MSE interceptors.

Industrial Base and Workforce Growth

Alongside expanding production facilities, Lockheed Martin said it is increasing hiring across manufacturing, engineering, and skilled trades to support growing demand.

The company stated that its ongoing investments are expected to create tens of thousands of jobs while strengthening the U.S. defense supply chain.

Lockheed Martin is also working closely with suppliers to improve production efficiency, increase resilience, and ensure the availability of critical components needed for large-scale missile manufacturing.

The THAAD contract highlights the growing emphasis on expanding U.S. missile defense production capacity amid increasing global demand for air and missile defense systems and broader efforts to strengthen the country’s defense industrial base.