Lockheed Martin, the prime contractor for the PAC-3 Missile Segment Enhancement (MSE) interceptor, has awarded L3Harris Technologies a major contract to manufacture propulsion systems for the missile.

The undefinitized contract, valued at up to $4.7 billion, covers large-scale production of the PAC-3 MSE’s advanced two-pulse solid rocket motors, Lethality Enhancers, and Attitude Control Motors. The agreement is expected to support production for more than seven years.

The deal follows Lockheed Martin’s contract, awarded in July and valued at up to $53.9 billion, to increase PAC-3 MSE production through 2033. The effort supports the Pentagon’s broader “Arsenal of Freedom” initiative, which aims to strengthen the US defense industrial base, accelerate weapons procurement, and expand manufacturing capacity to meet wartime requirements.

Expanding Production Capacity

L3Harris has been expanding its manufacturing infrastructure to accommodate growing demand for PAC-3 propulsion systems. In June, the company began construction of two additional facilities at its Camden, Arkansas, site, with both facilities expected to become operational in 2027.

The company has also expanded its US manufacturing footprint by adding more than 1 million square feet (92,903 square meters) of production space across facilities in states including Alabama and Virginia.

These investments are intended to increase production capacity and strengthen the industrial base supporting the PAC-3 MSE program as demand for advanced missile-defense capabilities continues to rise.

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