FILE PHOTO: The deal follows another multi-year contract to expand THAAD interceptor production as the Trump administration accelerates investments in missile manufacturing.
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KACPER PEMPEL
The Pentagon awarded Lockheed Martin Corp. a $59 billion deal to triple Patriot missile production over the next seven years, as the Trump administration works to boost a munitions stockpile drained by the Iran war.
The deal extends a $4.7 billion contract Lockheed received in April to boost production of the most advanced Patriot interceptors — known as Patriot Advanced Capability-3 Missile Segment Enhancement — with a new $53.86 billion modification that covers the duration of the seven-year contract.
The plan is to ramp up from roughly 600 missiles a year to around 2,000 a year by 2030. The high-value, hard-to-replace interceptors cost around $4 million each and have been crucial as Iran retaliated against US and Israeli attacks with thousands of missile and drone strikes across the Middle East.
As part of the effort, Lockheed said in a statement that it plans to hire 650 more workers, building a Patriot-focused workforce of 1,850 employees at its Camden, Arkansas, production line.
Missile manufacturing push gathers pace under Trump administration
The deal is the company’s second major multi-year missile production deal. Earlier this year, Lockheed was awarded a contract that could be worth as much as $35 billion from the Pentagon to quadruple production of the Terminal High Altitude Area Defense, or THAAD, interceptors, over seven years.
Both the PAC-3 MSE and THAAD contracts stem from the administration’s campaign to mobilize the defense industrial base. President Donald Trump has made the issue a White House priority as military planners scramble to replace thousands of missiles and interceptors used during the Iran war.
Last month, Trump invoked the Defense Production Act to remove obstacles and allow broader coordination among contractors.
Broader defence industry tapped to expand production capacity
The Pentagon has also looked beyond the traditional defense industry, encouraging commercial manufacturers — including automakers — to lend manufacturing expertise to missile production. Lockheed Martin recently agreed to explore ways General Motors could support weapons production.
Companies that provide components for the PAC-3 MSE and THAAD missiles are also beginning to mobilize for the ramp up. L3Harris Technologies Inc. announced earlier this week that it would accelerate the production of solid rocket motors along with other components for both missiles.
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Published on July 30, 2026
