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President Donald 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.”
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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.
“Our long-term investments in breakthrough manufacturing technologies and resilient supply chains let us pivot from steady production to a production surge in record time,” Northrop Grumman Vice President Ben Davies wrote in a statement. “As one of America’s leading producers of solid rocket motors, we’re supporting the administration’s push to accelerate munitions output.”
“It’s a mission-critical leap forward that ensures America’s defense edge stays sharper, faster, and farther ahead of global threats,” Davies continued.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LMT | LOCKHEED MARTIN CORP. | 581.10 | -2.02 | -0.35% |
| NOC | NORTHROP GRUMMAN CORP. | 545.82 | +2.80 | +0.52% |
| LHX | L3HARRIS TECHNOLOGIES INC. | 276.07 | -1.02 | -0.37% |
Northrop said it plans to raise PAC-3 solid rocket motor production at its Allegany Ballistics Laboratory in West Virginia, where the company has doubled tactical motor capacity since 2021 and expects to triple production capability by 2027. It will support U.S. Army plans to increase annual PAC-3 MSE missile production from about 600 units to thousands for U.S. forces and allied countries.
The deal establishes a second source for solid rocket motors and increases production of ignition safety devices. The Pentagon said adding another rocket-motor supplier would increase competition and reduce supply-chain risks.
Northrop is also doubling solid rocket motor capacity at its Utah facilities and increasing capacity by 25% at its Elkton, Maryland, plant.
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Under the THAAD agreement, Northrop will increase monthly deliveries of structural components, including interceptor shell cores, aft bulkheads and heat-shield assemblies. The company has supplied components for the missile-defense system since 2002.
Northrop said it has invested more than $2 billion in munitions-related technologies and facilities since 2019, including more than $1 billion for solid rocket motor production.
Lockheed announced a seven-year contract modification for up to $53.86 billion for PAC-3s. The award brings the total multiyear contract value to $58.62 billion, following the $4.7 billion UCA awarded in April for year one.
The agreements were developed with the Munitions Acceleration Council, the Economic Defense Unit, the Missile Defense Agency and the Office of the Under Secretary for Acquisition and Sustainment, the War Department said.
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