Lockheed Martin has been awarded a contract valued at up to $35 billion by the U.S. Department of Defense to substantially expand production of Terminal High Altitude Area Defense (THAAD) interceptors. The seven-year agreement is designed to quadruple annual interceptor output as the Pentagon seeks to replenish depleted missile inventories and enhance the country's air and missile defense capabilities.

The contract has been issued as an undefinitized contract action, allowing production activities to begin before all pricing and contractual details are finalized. This approach is intended to accelerate manufacturing while the government completes negotiations and secures the necessary congressional funding.

The production expansion comes amid growing demand for advanced missile defense systems following increased military operations and heightened geopolitical tensions. The U.S. administration has been encouraging defense manufacturers to boost output of critical weapons systems, including THAAD, Patriot interceptors, and other precision-guided munitions, to restore strategic stockpiles and support allied nations.

Lockheed Martin has already begun investing in new manufacturing infrastructure to support higher production levels, including new missile production facilities and broader capacity expansion initiatives across the United States. The company plans to invest billions of dollars through 2030 to modernize production lines and meet the Pentagon's long-term defense procurement requirements.