Lockheed Martin has partnered with the US Department of Defense to sharply increase production of THAAD interceptors as demand grows for advanced missile defence systems among the United States and its allies.
Through a newly established framework agreement, annual production of THAAD interceptors is set to rise from 96 to around 400 units, marking a more than fourfold expansion 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 employs hit-to-kill technology, destroying targets through direct impact rather than explosive warheads, and complements lower-tier defences such as the Patriot PAC-3 within a layered missile defence architecture.
To enable higher production capacity, Lockheed Martin will construct a new Munitions Acceleration Center in Camden, Arkansas. The facility will introduce advanced robotics and digital manufacturing techniques and support production of THAAD, PAC-3, and additional missile programmes.
The company said the site will also underpin workforce expansion and 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 output of six critical munitions by over 220 percent and expects continued growth in production rates through the end of the decade.
Lockheed Martin’s recent contract wins highlight its 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 interceptors, the largest Patriot missile procurement to date.
That was followed in January 2026 by an agreement with the Pentagon to scale annual PAC-3 MSE production from approximately 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 increase the total value to about $746 million, with work running through 2030.
