Lockheed Martin To Ramp Up THAAD Missile Production

Lockheed Martin announced on January 29 that it will quadruple production of its THAAD (Terminal High Altitude Area Defense) missile interceptors under a new Pentagon framework agreement. Annual interceptor output will rise from about 96 to 400 per year. “Today’s agreement to quadruple THAAD production means we will have more interceptors available than ever before to deter our adversaries,” said Lockheed Martin CEO Jim Taiclet. The announcement comes as part of a flurry of recent munitions-production initiatives: it follows a deal to more than triple production of Patriot PAC-3 interceptors, and it arrives as Congress approved an $839 billion defense budget – about $8.4 billion above the Pentagon’s request.

Lockheed noted that the THAAD expansion still requires final Congressional funding before a binding contract can be awarded. Pentagon budget documents estimate each THAAD interceptor costs roughly $12-13 million. In July 2025, the Missile Defense Agency (MDA) already modified its THAAD production contract to raise its value from $8.35 billion to $10.42 billion, reflecting higher production targets. Lockheed executives say the company will invest heavily to support this scale-up. The press release notes Lockheed’s plan to invest multibillions over the next few years and build or modernize dozens of factories for THAAD, PAC-3, and other missile lines. Dawn Golightly, a Lockheed missile-defense vice president, said the company “remains committed to innovation and investment in interceptor production” as global threats rise.