The Department of Defense and Lockheed Martin reached an initial agreement in April 2026 to increase manufacturing of the AIM-260 Joint Advanced Tactical Missile (JATM). The framework deal establishes a path for future multi-year procurement of the air-to-air weapon, which is designed to replace the current AMRAAM inventory. The announcement did not disclose specific dollar amounts, production volumes, or a detailed timeline for the ramp-up.
What it means
The agreement is part of a broader series of framework deals signed this year between the Pentagon and defense contractors. Under these arrangements, industry partners have pledged to use their own capital to modernize existing facilities and construct new production lines. In exchange, the Department of Defense has promised stable, multi-year contracts to ensure consistent demand. Lockheed Martin stated it “will support necessary investments to drive the production increase under this agreement,” though the company did not specify the exact level of internal funding required.
Finalizing these framework agreements into definitized contracts has proven difficult for both sides. The Pentagon currently has approximately $59 billion in undefinitized contract actions for Patriot PAC-3 interceptors and $35 billion for THAAD interceptors, according to department figures. Much of the funding needed to resolve these outstanding obligations is tied up in a $350 billion reconciliation request that Congress has not yet passed. The JATM program itself remains largely classified, with the Pentagon maintaining strict control over details since the capability first became public in 2019. International interest is growing; Australia announced in August that it plans to be the first foreign customer for the missile.
Key facts
- AIM-260 Joint Advanced Tactical Missile (JATM) will succeed the AMRAAM.
- Lockheed Martin and the Pentagon signed an initial framework agreement in April 2026.
- The deal sets the stage for future multi-year procurement (MYP).
- No dollar amount or production timeline was disclosed in the announcement.
- Lockheed pledged to support necessary investments for the production increase.
- The agreement is one of a dozen or so framework deals with elusive final contracts.
- $59 billion in undefinitized actions exist for Patriot PAC-3 interceptors.
- $35 billion in undefinitized actions exist for THAAD interceptors.
- Congress has not passed the Pentagon’s $350 billion reconciliation request.
- Australia announced plans to become the first international JATM customer in August.
Source: Department of Defense and Lockheed Martin news releases