Lockheed Martin to Quadruple THAAD Interceptor Production Capacity

Lockheed Martin has signed an agreement with the U.S. Department of War to increase annual production of Terminal High Altitude Area Defense (THAAD) interceptors from 96 to 400.

The agreement follows a framework arrangement signed earlier this month to accelerate production of PAC-3 Missile Segment Enhancement interceptors and outlines a seven-year pathway to higher THAAD output, with an initial contract award expected in the final fiscal year 2026, subject to Congressional appropriations and other funding sources.

To support the production increase, Lockheed Martin said it will break ground on a new Munitions Acceleration Center in Camden, Arkansas, aimed at expanding workforce capacity for THAAD, PAC-3 and other missile programs using automated and digital manufacturing processes.

The company currently operates more than 340,000 square feet of dedicated THAAD production space in the United States and employs over 2,000 workers on the program, as the Pentagon prioritizes interceptor availability amid rising global missile threats.

The company has invested more than $7 billion since President Donald Trump’s first term to expand production capacity for priority defense systems, including about $2 billion focused on munitions, and plans further multibillion-dollar investments over the next three years to build, modernize and upgrade more than 20 facilities across several U.S. states.

The Department of War has not disclosed the total value of the THAAD framework agreement or detailed production milestones tied to future contract awards.