
Rendering Shows Lockheed Martin’s Terminal High Altitude Area Defense (THAAD ) Weapon System Launcher With Eight Canisters. – Lockheed Martin
By Prabhat Ranjan Mishra,
Published by Interesting Engineering, 1 February 2026
The THAAD framework agreement is the second signed between Lockheed Martin and the DoW.
The United States is aiming to boost the production of Terminal High Altitude Area Defense (THAAD) interceptors. The Department of War has signed a framework agreement with Lockheed Martin to quadruple the production of THAAD interceptors, from 96 to 400 interceptors per year.
This announcement builds on the first-of-its-kind agreement signed between the parties earlier this month to accelerate production of PAC-3 Missile Segment Enhancement (MSE) interceptors.
The Terminal High Altitude Area Defense (THAAD) is a highly effective, combat-proven defense against short, medium and intermediate-range ballistic missile threats. THAAD is the only U.S. system designed to intercept targets outside and inside the atmosphere, according to Lockheed Martin.
“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,” said Lockheed Martin Chairman, President and CEO Jim Taiclet.
“Today’s agreement to quadruple THAAD production means we will have more interceptors available than ever before to deter our adversaries.”
THAAD framework agreement
The THAAD framework agreement is the second signed between Lockheed Martin and the DoW, with the first of its kind for the entire industry signed earlier this month for PAC-3 MSE interceptors. Lockheed Martin has more than 340,000 square feet of dedicated operations space in the U.S. for THAAD, with more than 2,000 U.S. employees supporting the program currently, according to a press release.
The continued partnership between the DoW and Lockheed Martin will increase production of THAAD interceptors from its current 96 per year over the next seven years. Lockheed Martin will work with the U.S. government toward an initial contract award on the THAAD framework agreement, expected in the final fiscal year 2026 Congressional appropriations and other sources of funding, as per the release.
Lockheed Martin will also break ground on a new Munitions Acceleration Center in Camden, Ark. This world-class facility will prepare the workforce of the future to build THAAD, PAC-3 and other capabilities using advanced manufacturing, robotics and digital technologies.
The company revealed that it has invested more than $7 billion since US President Donald Trump’s first term to expand capacity for priority systems, including approximately $2 billion dedicated to accelerating munitions production.
Lockheed Martin is planning a multibillion-dollar investment over the next three years to expand production and build and modernize more than 20 facilities in Arkansas, Alabama, Florida, Massachusetts and Texas. This includes upgrading existing facilities and incorporating advanced manufacturing techniques, production lines, tooling and plant layouts to meet urgent production demand.
THAAD continues to offer incremental capability improvements within the weapon system to continually improve effectiveness against current and emerging threats. In March 2022, the THAAD Weapon System successfully demonstrated integration with the PAC-3 Missile Segment Enhancement (MSE), providing the warfighter with an expanded battle space and enhanced flexibility.
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