Lockheed Martin signed a framework agreement with the U.S. Department of War on January 29, 2026, to increase Terminal High Altitude Area Defense (THAAD) interceptor production from 96 per year to 400 per year. The company also announced it will break ground on a new Munitions Acceleration Center in Camden, Arkansas, which will utilize advanced manufacturing, robotics, and digital technologies to produce THAAD, PAC-3 Missile Segment Enhancement interceptors, and other capabilities.
What it means
The agreement establishes a production ramp-up over the next seven years, with an initial contract award expected in the final fiscal year 2026 Congressional appropriations. This follows a prior framework agreement signed earlier in January 2026 for PAC-3 MSE interceptors, marking the second such deal between Lockheed Martin and the Department of War. The Camden facility is part of a broader expansion plan that includes building or modernizing more than 20 facilities across Arkansas, Alabama, Florida, Massachusetts, and Texas over the next three years.
Lockheed Martin stated it has invested more than $7 billion since President Donald Trump’s first term to expand capacity for priority systems, with approximately $2 billion dedicated specifically to accelerating munitions production. The company reported that manufacturing jobs growth has exceeded 60% since that period and projected an additional ~50% growth by 2030. Lockheed Martin currently supports the THAAD program with more than 2,000 U.S. employees across 340,000 square feet of dedicated operations space. The company noted that deliveries of six critical munitions have increased by more than 220% since 2016 and plans an additional 245%+ increase in deliveries to support PAC-3 and THAAD capabilities.
Key facts
- THAAD interceptor production capacity increases from 96 to 400 per year.
- New Munitions Acceleration Center breaks ground in Camden, Arkansas.
- Production ramp-up projected over seven years; initial contract award expected in final fiscal year 2026.
- Lockheed Martin plans multibillion-dollar investment over three years to build or modernize more than 20 facilities in Arkansas, Alabama, Florida, Massachusetts, and Texas.
- Company reports $7 billion total investment since President Trump’s first term; $2 billion dedicated to munitions production acceleration.
- More than 2,000 U.S. employees currently support the THAAD program across 340,000 square feet of operations space.
- Deliveries of six critical munitions increased more than 220% since 2016; additional 245%+ increase planned for PAC-3 and THAAD.
- Manufacturing jobs growth exceeded 60% since President Trump’s first term; ~50% additional growth projected by 2030.
Source: Lockheed Martin news release (PR Newswire)