Lockheed Martin and U.S. Defense Forge Historic Deal to Boost THAAD Interceptor Production Fourfold

Lockheed Martin to Launch New Munitions Acceleration Center in Arkansas

Lockheed Martin (NYSE: LMT) has officially entered into a groundbreaking framework agreement with the Department of War (DoW) aimed at increasing the production capacity of Terminal High Altitude Area Defense (THAAD) interceptors from 96 to an impressive 400 interceptors annually. This significant announcement builds upon a recent agreement focused on expediting the production of the PAC-3® Missile Segment Enhancement (MSE) interceptors.

In alignment with these production enhancement efforts, Lockheed Martin will commence construction of a new Munitions Acceleration Center in Camden, Arkansas. This state-of-the-art facility is designed to prepare a future workforce skilled in advanced manufacturing, robotics, and digital technologies essential for constructing THAAD, PAC-3, and other vital defense capabilities.

AN OVERVIEW OF THE SITUATION

The ongoing collaboration between the DoW and Lockheed Martin promises to ramp up THAAD interceptor production over the next seven years. The company aims to secure an initial contract award under the THAAD framework agreement, projected to be included in the final fiscal year 2026 Congressional budget appropriations and other funding resources.

ADDITIONAL INSIGHTS

• Multibillion-Dollar Engagement: Lockheed Martin has committed over $7 billion since President Trump’s initial term, prioritizing system capacity expansions. Around $2 billion has been specifically allocated to boost munitions production. Plans are underway for a further multibillion-dollar investment over the next three years to enhance production and modernize over 20 facilities across Arkansas, Alabama, Florida, Massachusetts, and Texas. This involves both upgrading existing operations and implementing advanced manufacturing techniques to meet increased demand.
• Key Timeline: The newly signed THAAD framework marks the second agreement between Lockheed Martin and the DoW, following the first of its kind in the industry for PAC-3 MSE interceptors.
• Manufacturing Capabilities: Lockheed Martin boasts over 340,000 square feet dedicated to THAAD operations within the U.S., with upwards of 2,000 employees currently engaged in this critical program.
• Job Creation in America: Lockheed Martin is dedicated to generating tens of thousands of high-quality American jobs across manufacturing, engineering, and skilled trades to accommodate rising production needs.
• Delivery Enhancements Over the Decade: Since 2016, Lockheed Martin has successfully increased deliveries of six key munitions by over 220%, with a further 245% rise anticipated to support both PAC-3 and THAAD capabilities. This growth in munitions production has led to a manufacturing job increase of more than 60% since President Trump’s initial term, with projections indicating an additional 50% growth by 2030 to sustain elevated production levels.

EXPERT COMMENTARY

“Our commitment to advancing the Department of War’s vision for acquisition reform is unwavering. This agreement to quadruple THAAD production signifies we will have an unprecedented number of interceptors available to deter adversaries,” stated Jim Taiclet, Chairman, President, and CEO of Lockheed Martin.