Lockheed ramps up THAAD interceptor output with new framework deal and Camden facility

by Clarence Oxford
Los Angeles CA (SPX) Feb 02, 2026

Lockheed Martin has signed a new framework agreement with the U.S. Department of War that aims to quadruple annual production of Terminal High Altitude Area Defense (THAAD) interceptors from 96 to 400 units. The multi year arrangement is intended to expand the supply of missile defense interceptors available to the U.S. military and allied customers amid rising global demand.

The company will also break ground on a new Munitions Acceleration Center in Camden, Arkansas to support the production ramp. The facility is designed as a world class manufacturing hub where employees will build THAAD, PAC 3 Missile Segment Enhancement (MSE) and other munitions using advanced manufacturing methods, robotics and digital technologies.

Under the framework agreement, Lockheed Martin will work with the U.S. government toward an initial contract award tied to final fiscal year 2026 Congressional appropriations and other funding sources. The deal follows an earlier, first of its kind acquisition reform agreement between Lockheed Martin and the Department of War covering PAC 3 MSE interceptor production.

Lockheed Martin reports that it currently has more than 340,000 square feet of dedicated THAAD operations space in the United States and more than 2,000 U.S. employees supporting the program. The new build out in Camden is part of a broader effort to grow capacity, reconfigure plants and introduce new production lines, tooling and layouts to sustain higher output rates.

The company states it has invested more than 7 billion dollars since President Donald Trump first took office to expand capacity for priority defense systems, including about 2 billion dollars focused specifically on accelerating munitions production. Over the next three years, Lockheed Martin plans additional multibillion dollar investments to expand, modernize and upgrade more than 20 facilities across Arkansas, Alabama, Florida, Massachusetts and Texas.

Those investments are expected to incorporate advanced manufacturing techniques and digital production technologies to help meet urgent interceptor and munitions demand. The company frames the upgrades as critical to delivering higher volumes of air and missile defense systems while maintaining quality and reliability for U.S. and allied forces.

Lockheed Martin also highlights the employment impact tied to its munitions expansion strategy. The company says it is creating tens of thousands of American jobs in manufacturing, engineering and skilled trades as it increases production of THAAD, PAC 3 and other systems needed to replenish stocks and equip new customers.

According to the company, deliveries of six critical munitions have risen by more than 220 percent since 2016. Looking ahead, Lockheed Martin projects an additional increase of more than 245 percent in those munitions to support growing PAC 3 and THAAD demand, driving manufacturing workforce growth of more than 60 percent since President Trump's first term and a further rise of around 50 percent by 2030.

"We are committed to further building on the Department of War's vision for advancing acquisition reform with additional framework agreements for the critical munitions needed by the U.S. military and our allies. Today's agreement to quadruple THAAD production means we will have more interceptors available than ever before to deter our adversaries," said Lockheed Martin Chairman, President and CEO Jim Taiclet.

The company describes itself as a global defense technology firm focused on all domain mission solutions and a 21st Century Security vision intended to accelerate delivery of advanced capabilities. Through its missile defense and munitions portfolio, Lockheed Martin positions the expanded THAAD and PAC 3 production as a key element of efforts to strengthen U.S. and allied deterrence and response options.