The Pentagon announced an additional framework agreement to increase production of Patriot and THAAD missile interceptors. The THAAD system, shown here, is the only U.S. interceptor missile capable of destroying inbound enemy missiles in outer space as well as from within Earth’s atmosphere. (Lockheed Martin)
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The Pentagon today announced the signing of two framework agreements aimed to increase production of interceptor missile components.
The agreements with Lockheed Martin and General Dynamics have the stated goals of quadrupling the production rate of Terminal High Altitude Area Defense interceptors, known as THAADs, and tripling production of Patriot Advanced Capability-3 Missile Segment Enhancement interceptors, known as PAC-3 or Patriot missiles.
“Today’s announcement represents an example of the evolution of how we partner with industry to expand the Arsenal of Freedom, outpace emerging threats, and ensure the Warfighter never faces a fair fight,” said Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment, in a release.
A Series of Agreements
A U.S. Army Air Defense Artilleryman reloads a Patriot missile launcher in the Middle East in support of Operation Epic Fury. The Patriot is the U.S. Army’s primary terminal-phase anti-ballistic missile system. (U.S. Army photo)
U.S. Army
The announcement is the latest in a long-running series of efforts to rapidly boost missile production, reflecting an ongoing need for steady missile supplies.
On January 6, Lockheed announced a framework agreement with the Pentagon to triple the PAC-3 MSE production rate to over 2,000 a year.
The Pentagon followed this with a framework agreement with Lockheed Martin announced January 29 aiming to quadruple THAAD production from 96 to 400 interceptors annually.
In March, the Pentagon announced three framework agreements with BAE Systems, Lockheed, and Honeywell Aerospace to accelerate the development of missile components. According to the stated goals of those agreements, Lockheed would quadruple Precision Strike Missiles, or PRsMs, and work with BAE Systems to increase production of THAADs also to a quadruple rate.
In April, the Pentagon and Boeing agreed on a seven-year framework to triple seekers used on PAC-3 missiles that enable them to intercept targets.
This was followed by an additional multi-year framework agreement between the Pentagon, L3Harris, and Lockheed to quadruple THAAD missile propulsion systems.
On August 3, the Pentagon announced a $3 billion agreement with Northrop Grumman to quadruple THAAD missile components in San Diego.
Why The Missiles Are Significant
The PAC-3 MSE is a highly sought-after air defense munition due to its advanced capabilities and versatility. As a next-generation interceptor, it offers improved range, speed, and maneuverability, making it an effective counter to a wide range of threats, including tactical ballistic missiles, cruise missiles, aircraft and large drones. (Official U.S. Army photo)
U.S. Army
The PAC-3 MSEs and THAAD systems represent the cutting-edge of American missile defense technology. Although low-cost drones are coming to the fore of modern combat, these interceptor missiles possess vital abilities not only to project firepower but defend U.S. assets of strategic significance on the global stage.
Both missile interceptors are designed to protect U.S. and allied troops, civilians and infrastructure by knocking hostile aerial threats – such as incoming missiles, aircraft and large drones – out of the sky.
The PAC-3 is a missile type produced by Lockheed in diverse variations. The PAC-3 MSE model now in urgent demand by the Pentagon can fly farther and reach higher altitudes to strike targets due to its two-pulse solid rocket motor.
The THAAD missiles produced by Lockheed are the only U.S. interceptors capable of striking down missiles attacking from outer space as well as from within Earth’s atmosphere.
Staving Off Critical Shortfalls
A Patriot Interceptor missile is fired during an exercise in the Pacific in August 2025.(U.S. Army photo by Capt. Frank Spatt)
U.S. Army
The multiple agreements come as the U.S. is reported to be facing a dire shortage of missiles.
Addressing members of the Senate Appropriations Committee on July 21, Defense Secretary Pete Hegseth said the Pentagon needed $67.1 to cover expenses to prevent shortfalls, including of munitions used in military operations.
“Without these funds, we face critical shortfalls that threaten our ability to also simply pay our service members, rapidly replenish equipment and munitions, and sustain vital operations without disruption,” he told lawmakers.
Following the announcement of its latest framework agreement, the Pentagon announced several additional initiatives to ramp up defense technology production including a $174 million investment in a gallium production facility in Australia and a $37.2 million contract to produce copper foil for microelectronics.
The Pentagon’s emphasis on missile production and acquisition demonstrates the extent to which sophisticated interceptors remain an essential component of modern warfare and U.S. defense despite recent advances in low-cost unmanned aircraft systems.