Northrop Grumman, Lockheed Martin win deals to boost THAAD, PAC-3

Key Points:

• The U.S. War Department has signed framework agreements with Lockheed Martin and Northrop Grumman to significantly increase production of missile-defense components for THAAD and PAC-3 systems, aiming to quadruple THAAD output and triple PAC-3 production.
• Northrop Grumman's agreements, valued at $3 billion, include $2 billion for rocket motors and safety devices and $1 billion to boost THAAD component deliveries, supporting a surge in missile production capacity.
• Northrop plans to expand solid rocket motor production at multiple facilities, including tripling capacity at its West Virginia plant by 2027, to meet increased demand for PAC-3 missiles from the U.S. Army and allied nations.
• Lockheed Martin secured a seven-year contract modification worth up to $53.86 billion for PAC-3 missile production, bringing the total multiyear contract value to $58.62 billion.
• These agreements provide suppliers with long-term demand commitments to invest in tooling, facility upgrades, and workforce development, enhancing supply chain resilience and competition in missile-defense manufacturing.