Lockheed Martin Plans Fourfold Increase in THAAD Interceptor Missile Production

U.S. defense giant Lockheed Martin will quadruple production of interceptor missiles for THAAD systems.

The company has signed a framework agreement with the Pentagon, according to a Lockheed Martin press release.

Annual production of Talon interceptor missiles is set to rise from 96 to 400 units.

“Today’s agreement … means we will have more interceptors than ever before to deter our adversaries,” said Lockheed Martin CEO Jim Taiclet.

The company plans to ramp up production over the next seven years.

The agreement also expands on a previous arrangement between Lockheed Martin and the U.S. Department of War reached in early January.

At that time, the two sides agreed to accelerate production of PAC-3 MSE (Missile Segment Enhancement) interceptor missiles for Patriot air defense systems.

To increase production, the company will begin construction of a new Munitions Accelerator Center in Camden, Arkansas.

Lockheed Martin noted that it has already invested more than $7 billion in expanding production capacity for priority defense programs, including about $2 billion dedicated to accelerated munitions production.

THAAD

THAAD (Terminal High Altitude Area Defense) is a missile defense system designed to intercept ballistic targets outside the atmosphere. It relies solely on the kinetic energy of the Talon interceptor missile to destroy its targets.

Increasing interceptor production for this system will help offset U.S. Army expenditures in the Middle East last year and fulfill a major contract to supply THAAD systems to Saudi Arabia, as well as build up reserves to counter China.

According to CNN sources, during the twelve-day war in June 2025 between Israel and Iran, the U.S. military expended more than 150 THAAD interceptor missiles – about 25% of its total stockpile of such missiles.

U.S. systems were used to intercept ballistic missiles launched by Iran and by the Houthis in Yemen.

In 2024 and 2025, the United States purchased only 23 Talon interceptor missiles, and it is expected to receive about 37 more in 2026.