ATACMS Replacement With Enhanced Capabilities: the US Plans to Produce 400 PrSM Ballistic Missiles Annually

The United States plans to produce 400 new Precision Strike Missile (PrSM) ballistic missiles annually.

Lockheed Martin announced this.

The new missiles will gradually replace the ATACMS missiles that are being decommissioned.

To increase missile production, automation of production processes and automated quality control based on modern technologies are used.

In July 2025, the Precision Strike Missile program transitioned to Phase C, which enables the launch of large-scale production and deployment of new missiles for combat duty.

At the end of March, the Pentagon signed a $4.9 billion contract to supply a large batch of PrSM missiles in the main version of Increment 1.

Procurement of the latest ballistic missiles is scheduled for the period from 2025 to 2029. Under the agreement, the US Army plans to receive 1,296 PrSM missiles.

In addition to purchasing missiles in the Increment 1 version, which are capable of hitting only stationary targets, the US military also ordered 10 PrSM Increment 2 missiles equipped with a homing head to hit moving targets.

The ordering of PrSM missiles for the US Army has been going on for several years. Thus, between 2023 and 2025, a contract was signed for 282 missiles.

To date, the PrSM ballistic missile has demonstrated its ability to hit targets at a distance of up to 500 km, with an estimated range of 650 km. This significantly exceeds the characteristics of the ATACMS missiles in service.

In June, Australia signed a Memorandum of Understanding with the United States on the possibility of basing the production and maintenance of the Precision Strike Missile (PrSM) on its territory.

In addition, Australia will invest A$310 million over the next decade to become a full partner in the PrSM program, and plans to invest another A$150 million over five years to purchase the initial batch of weapons.