Lockheed Martin Secures $2B Contract to Replenish THAAD Missile Stockpiles

Lockheed Martin has been awarded a new contract by the U.S. Department of Defense to produce additional interceptor missiles for the Terminal High Altitude Area Defense (THAAD) system.

According to a Pentagon press release, the latest award is valued at more than $2 billion, bringing the total contract value to over $10 billion.

The missiles are scheduled to be delivered by December 1, 2029.

The contract follows the reported use of roughly 25% of the U.S. THAAD inventory during a 12-day conflict between Israel and Iran in June, underscoring the need to quickly replenish depleted stockpiles to maintain readiness for future contingencies.

A similar shortage has been noted for other missile defense systems, including the Patriot.

To meet growing demand, Lockheed Martin plans to expand production of both air and missile defense interceptors.

THAAD

The THAAD system is equipped with a kinetic warhead designed to destroy incoming missiles through direct impact, rather than using explosive fragmentation. This “hit-to-kill” technology increases the likelihood of neutralizing ballistic threats by causing catastrophic damage on impact.

THAAD interceptors are capable of targeting ballistic missiles at altitudes up to 150 km and ranges up to 200 km, according to published specifications.

The U.S. currently fields seven THAAD batteries and plans to increase that number to eight as part of broader efforts to enhance ground-based missile defense capabilities.