Lockheed Martin has joined with the US Department of Defense to dramatically expand production of THAAD interceptors, responding to rising demand for advanced missile-defence capabilities across the United States and allied nations.
Under a new framework agreement, annual THAAD production will increase from 96 to roughly 400 interceptors, representing a more than fourfold surge in output over the coming years.
THAAD is a ground-based air and missile defence system designed to defeat short-, medium-, and intermediate-range ballistic missiles in their terminal phase, providing high-altitude protection against incoming threats.
The interceptor uses hit-to-kill technology, destroying targets through direct impact rather than explosive warheads, and operates as part of a layered defence architecture alongside lower-tier systems such as Patriot PAC-3.
To support the production expansion, Lockheed Martin will build a new Munitions Acceleration Center in Camden, Arkansas. The facility will incorporate advanced robotics and digital manufacturing technologies and support production of THAAD, PAC-3, and other missile programmes.
The company said the site will also enable workforce growth and strengthen long-term manufacturing resilience.
Lockheed Martin plans multibillion-dollar investments over the next three years to modernise or expand more than 20 facilities across several states, including Arkansas, Alabama, Florida, Massachusetts, and Texas.
Since 2016, the company has increased production of six critical munitions by more than 220 percent and expects further growth in output through the end of the decade.
Recent contract awards underscore Lockheed Martin’s expanding role across US defence programmes in the air, missile, space, and maritime domains.
In September 2025, the US Army awarded the company a $9.8 billion contract for 1,970 PAC-3 Missile Segment Enhancement (MSE) interceptors, the largest Patriot missile procurement to date.
This was followed in January 2026 by a Pentagon agreement to scale annual PAC-3 MSE production from around 600 to 2,000 interceptors over seven years.
Separately, Lockheed Martin Space received a $647 million contract modification in October last year for Trident II missile production and sustainment, with options that could raise the total value to about $746 million, with work continuing through 2030.
