On Thursday, January 29, 2026, the American company Lockheed Martin announced that it had entered into a seven-year framework agreement with the U.S. Department of Defense to quadruple production of interceptor missiles for the advanced THAAD (Terminal High Altitude Area Defense) missile defense system, from the current level of 96 units per year to approximately 400.
The missiles will be produced at the new Munitions Acceleration Center in Camden / Graphics: Lockheed Martin
This announcement follows the first-of-its-kind agreement signed between the parties on January 6 of this year, aimed at accelerating production of PAC-3 MSE (Patriot Advanced Capability-3 Missile Segment Enhancement) interceptor missiles for the MIM-104 Patriot air and missile defense system. The agreement provides for tripling production from the current level of about 600 to 2,000 missiles per year (Lockheed Martin Plans to Triple Output of PAC-3 MSE Missiles).
As part of support for activities related to launching increased production of both types of interceptor missiles, Lockheed Martin symbolically broke ground yesterday on the new Munitions Acceleration Center in Camden, Arkansas. This world-class facility will prepare the workforce of the future to produce THAAD, PAC-3, and other missile systems by leveraging advanced manufacturing, process automation, and digital technologies.
Lockheed Martin will now work with the U.S. government to secure the first task order under the framework agreement, which is expected to be awarded in fiscal year 2026, subject to congressional appropriations and other funding sources.
Since the first term of President Donald Trump, Lockheed Martin has invested more than 7 billion USD in expanding production capacity for priority systems, including approximately 2 billion USD to accelerate ammunition production. The company plans multi-billion-dollar investments over the next three years to increase output and to build and modernize more than 20 facilities in Arkansas, Alabama, Florida, Massachusetts, and Texas. These efforts include upgrading existing plants and implementing advanced manufacturing techniques, production lines, tooling, and systems to meet urgent production demand.
Since 2016, Lockheed Martin has increased deliveries of six key types of munitions by more than 220% and plans an additional increase of over 245% to support PAC-3 and THAAD missile deliveries. This has resulted in an increase in industry employment of more than 60% since President Trump’s first term, with a further rise of approximately 50% projected by 2030 to sustain the higher production tempo.
“We are committed to further building on the Department of War’s vision for advancing acquisition reform with additional framework agreements for the critical munitions needed by the U.S. military and our allies. Today’s agreement to quadruple THAAD production means we will have more interceptors available than ever before to deter our adversaries,” said Lockheed Martin Chairman, President and CEO Jim Taiclet.
THAAD
The previous production contract for THAAD system missiles was signed on July 28, 2025, with the Missile Defense Agency (MDA) and was valued at 2.063 billion USD. It took the form of an amendment under the then-current framework agreement, increasing its total value to 10.417 billion USD. Earlier, on January 29, 2025, the company delivered the 900th production THAAD interceptor missile to the MDA.
However, according to last year’s reports, during the 12-day war between Israel and Iran, the United States, while supporting the Jewish state, launched more than 150 interceptor missiles, representing about 17% of all missiles delivered to date (according to CNN, as much as 25%). It should be noted that a certain number of missiles had previously been expended during exercises and, in the preceding year, during the interception of Houthi attacks, when the system made its combat debut with the U.S. Army.
The U.S. Army now operates eight THAAD batteries, following the delivery of elements of the latest one on June 18, 2025. Lockheed Martin has been the prime contractor for the THAAD system since 1987 and has played a key role in its continuous development, production, and integration into the U.S. Army under the supervision of the MDA. The first battery, A-4, was delivered to and fielded by the U.S. Army in May 2008.
The launcher is integrated with the MRP-T (Missile Round Pallet – Transportable) transport platform using an LHS (Load Handling System) self-loading system with a digital control interface, analogous to the solution used in PLS (Palletized Load System) vehicles based on the Oshkosh M1075 heavy truck chassis.
The system employs hit-to-kill interceptor missiles, engaging targets in the lower exo-atmosphere at the beginning of the terminal phase of flight. Targets are precisely guided using an infrared (IR) seeker based on indium antimonide (InSb) technology, operating in the 3–5 μm band and developed by BAE Systems. The IR seeker is housed in the kill vehicle (KV) beneath a forward shroud, which is jettisoned during the terminal approach. The stabilized sensor feeds data to the DACS (Divert and Attitude Control System) guidance and control system developed by Pratt & Whitney Rocketdyne. On March 17, 2020, BAE Systems received a contract from Lockheed Martin to develop a next-generation infrared seeker.
The THAAD system has been exported to the United Arab Emirates and Saudi Arabia, while the United States has unsuccessfully offered it to India and Oman as well.
.@LockheedMartin broke ground on a Munitions Acceleration Center in Camden, AR, a flagship example of their multibillion-dollar investment to speed up munitions production for our warfighters. Click below for more: ⬇️
— Lockheed Martin News (@LMNews) January 29, 2026