NEWS

03.08.2026 | Pentagon boosting THAAD interceptor production with Northrop Grumman, Lockheed Martin deal
Source - Fox News

Trump's War Department is supercharging missile-defense production, signing framework agreements with Lockheed Martin and Northrop Grumman to expand production capacity for components used in two defense systems.

The deals aim to quadruple output of Terminal High Altitude Area Defense (THAAD) interceptor structural components and support a threefold increase in Patriot Advanced Capability-3 (PAC-3) production, according to a War Department release Monday.

"Building the Arsenal of Freedom requires robust, dynamic supply chains at every level of the industrial base," Michael Duffey, undersecretary for acquisition and sustainment, wrote in a statement. "Framework agreements with munition components suppliers like Northrop Grumman are vital to accelerating the tripling of PAC-3 and quadrupling of THAAD interceptor production."

The department said the agreements would give suppliers longer-term demand commitments needed to invest in tooling, facility upgrades and workforce development.

Financial terms and production timelines were not included in the War Department announcement, but Northrop Grumman said it entered into agreements worth a combined $3 billion. The deals include a $2 billion agreement to supply rocket motors and safety devices and a $1 billion agreement to increase deliveries of THAAD components.


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