The U.S. Department of Defense has signed a massive $58.6 billion contract with Lockheed Martin to dramatically expand production of Patriot missile interceptors, as the Pentagon works to replenish stockpiles depleted by conflicts involving Iran and Ukraine.

The multi-year agreement, covering 2026 through 2032, is one of the largest procurement contracts in Pentagon history. It aims to increase Lockheed Martin’s annual production of Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement interceptors from roughly 600 to 2,000 per year.

The move comes after the U.S. diverted large numbers of Patriot interceptors to defend American forces and allies in the Middle East during the conflict with Iran, while also supplying Ukraine with air defense systems to counter Russian missile attacks. To conserve its inventory, Washington has already delayed planned interceptor deliveries to Ukraine and postponed deliveries to Switzerland until 2032.

Although the Pentagon did not disclose the exact quantity of missiles included in the contract, reports indicate the agreement covers more than 10,000 interceptors. The expanded production is also expected to modestly reduce the unit cost of each interceptor, which currently exceeds $4 million.

To meet the increased demand, Lockheed Martin plans to invest up to $9 billion in manufacturing facilities in Alabama and Arkansas by 2030 while hiring more than 1,000 additional employees. Suppliers of rocket motors, guidance systems, and warheads are also expected to expand production capacity.

The Pentagon has been urging U.S. defense manufacturers to significantly increase production as military planners prepare for the possibility of future conflicts, including a potential confrontation with China.

Meanwhile, the U.S. has also ordered older PAC-2 Patriot interceptors from Raytheon for the first time in three decades. The $441 million purchase is intended to strengthen defenses against aircraft and drones while preserving the more advanced PAC-3 interceptors for ballistic missile threats.

(YWN World Headquarters – NYC)