$35 billion is the ceiling on a new seven-year Pentagon contract that will have Lockheed Martin quadruple production of Thaad missile-defense interceptors.
Lockheed said the award is an undefinitized contract action, letting work proceed while final terms are completed under a broader push by the Trump administration to expand munitions output.
The deal follows a January framework agreement between Lockheed and the Defense Department to raise interceptor production significantly over multiple years.
Higher Thaad output would strengthen a key US missile-defense supply line as Washington presses contractors to deliver more weapons faster.
Can the US defense industry quadruple missile output in time to meet urgent global threats?
Will America's massive munitions buildup deter conflict or trigger a new global arms race?
Is spending billions on million-dollar missiles a winning strategy against low-cost drones and rockets?
U.S. Launches $35 Billion THAAD Production Surge: Strategic, Economic, and Global Impacts Through 2032
Overview
In 2026, Lockheed Martin was awarded a landmark $35.3 billion contract to dramatically expand production of THAAD missile interceptors, a move central to the Department of War's Acquisition Transformation Strategy. This multi-year agreement aims to boost U.S. missile defense by scaling up manufacturing across several key locations, including a new Munitions Production Center in Troy, Alabama. Lockheed Martin is investing over $9 billion through 2030 to support this surge, while partners like BAE Systems will increase output of advanced infrared seekers, which are vital for THAAD's hit-to-kill technology. Together, these efforts strengthen America's defense readiness against evolving global threats.