The Pentagon awards $3 billion to boost production of Patriot and THAAD interceptors amid depleted stockpiles and rising global tensions.
The Pentagon signed a $3 billion contract with Lockheed Martin (LMT) and Northrop Grumman (NOC) to accelerate production of Patriot and THAAD missile defense components. The deal aims to address critical shortages, with U.S. stockpiles holding fewer than 1,000 Patriot interceptors and under 250 THAAD interceptors.
The agreement includes a $2 billion framework to triple Patriot output and a $1 billion deal to quadruple THAAD component supply over seven years. This follows a separate $58.6 billion contract awarded to Lockheed last week for Patriot interceptors.
The move comes as conflicts in Ukraine and the Middle East strain existing missile defense inventories, prompting the Pentagon to prioritize production capacity expansion.