The administration announced framework agreements with Lockheed Martin and Northrop Grumman to quadruple THAAD interceptor production.
The administration announced framework agreements with Lockheed Martin and Northrop Grumman to expand production capacity for components used in two major missile-defense systems. These deals aim to triple the production of Patriot Advanced Capability-3 (PAC-3) interceptors and quadruple the output of Terminal High Altitude Area Defense (THAAD) interceptor structural components. Michael Duffey, undersecretary of defense for acquisition and sustainment, stated that these agreements are vital for accelerating munitions output and building a robust industrial base. The deals provide long-term demand commitments that allow suppliers to invest in tooling, facility upgrades, and workforce development. Northrop Grumman reported its share of the agreement exceeds $3 billion, while Lockheed Martin was awarded a seven-year contract modification worth up to $53.86 billion for PAC-3s. These initiatives are designed to replace depleted inventories caused by conflicts in Iran and Ukraine. By working directly with component suppliers, the administration aims to strengthen the resilience of the missile production supply chain and ensure America's defense edge remains sharp.