Lockheed lands up to $35 billion to quadruple THAAD output as the Iran war drains US interceptors
An Iran war that burned through American missile-defense stockpiles is reshaping Pentagon procurement, starting with a contract to quadruple THAAD interceptor production.
An Iran war that burned through American missile-defense stockpiles is reshaping Pentagon procurement, starting with a contract to quadruple THAAD interceptor production.
The Missile Defense Agency awarded Lockheed Martin a seven-year deal worth up to $35 billion to quadruple production of THAAD interceptors, Defense Daily reported. The undefinitized contract action, which the Pentagon's contract notice valued at $35.3 billion, lifts output from 96 interceptors a year to 400 and runs through June 2032. It activates a framework agreement Lockheed signed with the Pentagon in January.
THAAD is the only US system built to hit ballistic missiles inside and outside the atmosphere. Its magazines ran low during the war against Iran. Raytheon took a separate $398.7 million award the same day, TechTimes reported. Work on the rounds runs through plants in Dallas, Sunnyvale, Troy, and Camden.
The contract landed alongside the bill. The White House sent Congress an $87.6 billion supplemental request, with about $67 billion for the military and $21 billion to recoup munitions spent in the conflict, Defense News reported. Most of the package covers Operation Epic Fury, the US war against Iran. A majority of lawmakers have objected to further military action, AP reported, setting up a fight over the money. President Trump met defense executives at the White House to press for higher output.
The wedge: a shooting war emptied the interceptor stockpile, and the replacement bill is arriving as a multiyear production ramp at a single prime while Congress argues over who pays for the war that drained it.
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Subscribe Free →What to watch: whether the supplemental clears a skeptical Congress, and whether Lockheed can actually reach 400 interceptors a year.
Frequently Asked Questions
How big is the THAAD contract?
The Missile Defense Agency awarded Lockheed Martin a seven-year undefinitized contract action worth up to $35 billion, valued at $35.3 billion in the Pentagon's contract notice, per Defense Daily, running through June 2032.
How much more will it produce?
The deal is meant to quadruple THAAD interceptor output from 96 a year to 400, TechTimes reported, activating a framework agreement Lockheed signed with the Pentagon in January.
What does this have to do with Iran?
THAAD magazines ran low during Operation Epic Fury, the US war against Iran, and the award is part of a push to rebuild stockpiles, per Defense News and TechTimes.
What is in the $87.6 billion supplemental?
The White House request includes about $67 billion for the military and $21 billion to recoup munitions spent in the conflict, with most of the package covering the Iran war, Defense News reported.
Will Congress approve it?
A majority of lawmakers have objected to further military action, AP reported, setting up a fight over the supplemental even as the Pentagon presses defense firms to raise output.
AI-generated summary, reviewed by an editor. More on our AI guidelines.
Marcus Schuler
Marcus Schuler edits BattlePolicy, a daily defense-technology brief connecting the companies and capabilities behind modern war to the contest among Europe, the US, Russia, and China.