Lockheed Martin has received a $2.06 billion contract modification to produce additional Terminal High Altitude Area Defense (THAAD) interceptors for the U.S. government, the Department of Defense announced.
The new award raises the total value of the current production contract from $8.35 billion to over $10.4 billion, with work set to continue through December 1, 2029.
According to a release from the Department of Defense, the modification (P00105) to contract HQ0147-17-C-0032 covers the manufacture of THAAD components under fixed-price incentive terms. The production effort will span multiple Lockheed Martin facilities, including locations in Dallas, Sunnyvale, Troy, and Camden.
The announcement comes just days after The War Zone reported that more than 150 THAAD interceptors were used by U.S. forces to defend Israel during a 12-day conflict with Iran earlier this year. If confirmed, the number of interceptors expended would represent roughly 25 percent of all THAAD interceptors ever ordered or planned by the U.S. military, based on Pentagon budget records.
“Operating alongside Israeli systems, THAAD operators burned through munitions at a furious clip, firing more than 150 missiles to shoot down the waves of Iranian ballistic missiles, according to U.S. officials,” The Wall Street Journal reported, citing unnamed defense sources.
The THAAD system, manufactured by Lockheed Martin Missiles and Fire Control, is one of the core pillars of the U.S. ballistic missile defense architecture. It is designed to intercept short- to intermediate-range ballistic missiles in their terminal phase using kinetic energy, without the use of a warhead.
The Pentagon has steadily expanded the system’s footprint over the past decade, with deployed units based in Guam, South Korea, and the continental United States. The reported use of the system in the Middle East, in coordination with Israeli defenses, highlights its operational integration with allied forces.
The 12-day missile exchange between Iran and Israel earlier this year—one of the most intense ballistic missile engagements in recent history—prompted U.S. forces to activate forward-deployed THAAD batteries to support allied defense. Officials have not confirmed the exact number of interceptors fired, but Pentagon sources cited by The War Zone said the rate of expenditure was unusually high.
The latest contract award is expected to support replenishment of the U.S. THAAD inventory while continuing component deliveries for both domestic and allied customers. Lockheed Martin has previously delivered THAAD systems to the United Arab Emirates and Saudi Arabia.