Lockheed Martin announced on Thursday that it had signed a framework agreement with the US Department of Defense (DoD) to quadruple production of Terminal High Altitude Area Defense (THAAD) anti-missile interceptors, from 96 to 400 per year.
The announcement comes as the United States has moved vast amounts of military forces into the Middle East for a potential war with Iran, and provides a rare look into the capacity of interceptor production at a moment when the US and Israel both used up many interceptors in three earlier conflict rounds with Iran in 2024-2025.
In addition, Lockheed said that its latest announcement “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’s systems are part of America’s multi-layered approach, including Patriot missile defense systems and the 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 to 48 to 72 interceptors and has a range of 150 to 200 kilometers.
Also in support of its production ramp activities, Lockheed stated, it “will break ground today on a new Munitions Acceleration Center in Camden, Ark. 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.”
This new deal 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’s Aerospace Industries has also accelerated the number of Arrow interceptors it manufactures to make up for a potential interceptor gap following having had to defend against well over 800 ballistic missiles during the 2023-2025 Middle East War.
Lockheed has invested in excess of $7 billion since US President Donald Trump’s first term to expand capacity for priority systems, including approximately $2 billion dedicated to accelerating munitions production.
It also said that 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. This includes upgrading existing facilities and incorporating advanced manufacturing techniques, production lines, tooling, and plant layouts to meet urgent production demand.”
“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,” said Jim Taiclet, who serves as Lockheed Martin’s chairman, president and CEO.