Lockheed Martin has signed a framework agreement with the Department of War (DoW) to significantly expand production of the Terminal High Altitude Area Defense (THAAD) interceptor. The agreement aims to increase annual production capacity from 96 to 400 interceptors, marking a major step in strengthening U.S. and allied missile defense capabilities.
This initiative builds on a recently signed agreement between the two parties to accelerate production of the PAC-3 Missile Segment Enhancement (MSE), reflecting a broader push to scale up critical munitions manufacturing in response to evolving global security demands.
As part of this expansion, Lockheed Martin has announced the development of a new Munitions Acceleration Center in Camden, Arkansas. The facility will focus on preparing a next-generation workforce while integrating advanced manufacturing technologies, robotics, and digital systems to enhance production efficiency for THAAD, PAC-3, and other defense systems.
The framework agreement outlines a phased increase in THAAD production over the next seven years, with an initial contract award expected following U.S. fiscal year 2026 appropriations. This long-term approach ensures sustained growth in manufacturing capacity while aligning with defense funding cycles.
Lockheed Martin has already invested more than $7 billion since 2016 to expand production capabilities for priority systems, including approximately $2 billion dedicated specifically to munitions manufacturing. The company plans further multibillion-dollar investments over the next three years to modernize and expand more than 20 facilities across key U.S. states such as Arkansas, Alabama, Florida, Massachusetts, and Texas.
Currently, Lockheed Martin operates over 340,000 square feet of dedicated THAAD production space in the United States, supported by more than 2,000 employees. The expansion is expected to generate tens of thousands of additional high-quality jobs across manufacturing, engineering, and skilled trades, contributing significantly to the U.S. defense industrial base.
Since 2016, the company has increased deliveries of six critical munitions by more than 220%, with plans to boost output by an additional 245% in the coming years to meet rising demand for systems like THAAD and PAC-3. This growth has already driven a 60% increase in manufacturing jobs, with further expansion projected through 2030.
Overall, the agreement underscores the strategic importance of scaling missile defense production in today’s security environment. By combining advanced manufacturing technologies with long-term investment and government collaboration, Lockheed Martin is positioning itself to deliver critical capabilities at speed and scale, ensuring readiness for current and future threats.
