L3Harris and Lockheed Martin Sign Deal to Triple THAAD Production Over Seven Years

L3Harris Technologies, Lockheed Martin and the US Department of Defense have signed a framework agreement aimed at tripling propulsion production capacity for the Terminal High Altitude Area Defense (THAAD) system over the next seven years. The agreement runs alongside a separate production framework focused on expanding propulsion line output for PAC-3 MSE interceptors.

The push for greater capacity follows a period of intense missile and air-defense expenditure across the Middle East and Ukraine, which has drawn down US and allied interceptor stockpiles faster than expected. Replenishing THAAD and PAC-3 MSE inventories now ranks high on the Pentagon’s procurement priorities, and the seven-year framework is designed to build a predictable, sustainable supply chain rather than rely on one-off orders.

Lockheed Martin is building a new 87,000-square-foot Munitions Manufacturing Center in Troy, Alabama, that will expand THAAD interceptor production capacity and is designed to also support the future Next Generation Interceptor program. L3Harris is contributing complementary propulsion system supply under the arrangement.

THAAD is a ground-based system designed to intercept ballistic missiles in their terminal phase, both inside and outside the atmosphere. Operated by the US Army, it has also been exported to allies including South Korea, Saudi Arabia and the UAE, forming the upper tier of layered regional missile defense. Faster production for both systems also shortens delivery timelines for allied nations that operate or plan to operate THAAD and PAC-3 MSE, a factor being watched closely by NATO and Gulf air-defense planners.

Source: defence-industry.eu, reporting on July 2026 Department of Defense contract announcements.