The administration announced new framework agreements with Lockheed Martin and Northrop Grumman to quadruple THAAD missile production.
The administration announced framework agreements with Lockheed Martin and Northrop Grumman to significantly expand production capacity for key missile-defense systems. These deals aim to quadruple the output of Terminal High Altitude Area Defense (THAAD) interceptor structural components and triple the production of Patriot Advanced Capability-3 (PAC-3) interceptors. Michael Duffey, the Undersecretary of War for Acquisition and Sustainment, stated that robust supply chains are vital for building the "Arsenal of Freedom." The agreements provide suppliers with long-term demand commitments, allowing for investments in tooling and workforce development. Northrop Grumman reported its portion of the deal exceeds $3 billion, while Lockheed Martin secured a seven-year contract modification worth up to $53.86 billion for PAC-3 interceptors. These production surges are intended to address pressures on U.S. stockpiles caused by ongoing military involvement in conflicts with Iran and Ukraine. By securing these contracts, the administration ensures a more resilient supply chain and a sharper defense edge against global threats.