Pentagon to Triple Patriot Missiles Production in New Acquisition Model with Lockheed Martin

The Pentagon has signed a new framework agreement with Lockheed Martin aimed at tripling annual production of Patriot air and missile defense interceptors by shifting to a long-term acquisition model designed to lock in demand and accelerate industrial output.

Under the seven-year agreement, the Department of War said the company would increase annual production of the PAC-3 Missile Segment Enhancement interceptor to approximately 2,000 units, up from about 600 today, to meet projected requirements from U.S. forces, allies and partner nations.

The agreement stems from the Department’s Acquisition Transformation Strategy, unveiled by Secretary of War Pete Hegseth during his “Arsenal of Freedom” speech at Fort McNair in November. “We will stabilize demand signals. We will award companies bigger, longer contracts for proven systems so those companies will be confident in investing more to grow the industrial base that supplies our weapons systems more and faster,” Hegseth said.

Officials said the framework is intended to provide long-term demand certainty while reducing upfront government capacity investments. Lockheed Martin is expected to support investments needed to scale production, while benefiting from predictable, multi-year demand for the PAC-3 MSE interceptor.

The framework establishes the basis for negotiating a seven-year supply contract, subject to congressional authorization and appropriations, and introduces delivery accountability requirements. It also allows the Department of War and Lockheed Martin to share gains from efficiency improvements tied to higher production volumes.

The department said supply chain expansion is central to the plan. As part of the agreement, it will work with key PAC-3 MSE suppliers to put in place seven-year subcontracts to support investments in component production and expand capacity across the supply base.

Officials added that the same facilitization model could be applied to other munitions programs over the next year, pending congressional funding, as part of efforts to replenish stockpiles, rebuild military capacity and expand the defense industrial base.