Lockheed Martin has signed a framework agreement with the US Department of War to quadruple the production of Terminal High Altitude Area Defense (THAAD) anti-missile interceptors from 96 to 400 per year, it said Thursday.
The announcement comes as the United States has moved vast military forces into the Middle East for a potential war with Iran. It provides a rare look into the capacity of interceptor production at a moment when the US and Israel both used up many of them in three rounds of conflict with Iran in 2024-2025.
In addition, the framework “builds on the first-of-its-kind agreement signed between the parties earlier this month to accelerate production of PAC-3 Missile Segment Enhancement (MSE) interceptors,” Lockheed said.
Lockheed’s systems are part of America’s multilayered approach, including Patriot and Aegis missile-defense systems.
Israel’s closest parallel to the THAAD is the Arrow anti-missile system, but the systems employ different defensive capabilities.
Each THAAD battery carries up 48-72 interceptors and has a range of 150-200 kilometers.
In support of its production ramp activities, Lockheed said it would “break ground today on a new Munitions Acceleration Center in Camden, [Arkansas]. This world-class facility will prepare the workforce of the future to build THAAD, PAC-3 and other capabilities using advanced manufacturing, robotics and digital technologies.”
The new agreement is expected to run for the next seven years and to be finalized as part of the US Congress’s 2025 appropriations process.
Israel’s Aerospace Industries additionally speeds up production
Israel Aerospace Industries has also accelerated the number of Arrow interceptors it manufactures to make up for a potential shortfall after it had to defend against well over 800 ballistic missiles during the 2023-2025 Middle East war.
Lockheed has invested more than $7 billion since US President Donald Trump’s first term to expand capacity for priority systems, including about $2b. dedicated to accelerating munitions production, it said.
It is “planning a multibillion-dollar investment over the next three years to expand production and build and modernize more than 20 facilities in Arkansas, Alabama, Florida, Massachusetts, and Texas,” it said. “This includes upgrading existing facilities and incorporating advanced manufacturing techniques, production lines, tooling, and plant layouts to meet urgent production demand.”
Lockheed Martin chairman, president, and CEO Jim Taiclet said: “We are committed to further building on the Department of War’s vision for advancing acquisition reform with additional framework agreements for the critical munitions needed by the US military and our allies. Today’s agreement to quadruple THAAD production means we will have more interceptors available than ever before to deter our adversaries.”