en.Wedoany.com Reported - The U.S. Department of Defense signed a contract with Lockheed Martin for the Terminal High Altitude Area Defense (THAAD) system on Wednesday. On the same day, President Donald Trump met with defense company executives, urging them to accelerate production to replenish the dwindling U.S. weapons stockpile. Government contractors told Trump they hope to secure more funding to expand capacity.
The U.S. Department of Defense stated that approximately $843 million in Fiscal Year 2026 procurement funds will be allocated to Lockheed's latest contract at the time of award. Defense Secretary Pete Hegseth said in a Defense Department post on Tuesday that, in exchange for long-term orders, defense contractors are now investing their own private capital in new manufacturing plants and assembly lines, enabling warfighters to receive the weapons, platforms, and technologies they need earlier.
According to a Lockheed Martin press release, the procurement contract is implemented through the Department of Defense's "Acquisition Transformation Strategy," which aims to enhance and accelerate the production of critical systems, weapons, and munitions for the U.S. military, while prioritizing U.S. allies and partners. This contract is one of the first agreements executed under this initiative and demonstrates the company's commitment to supporting the "Arsenal of Freedom," the Trump administration's blueprint for rebuilding the defense industrial base under the Acquisition Transformation Strategy.
This contract follows Lockheed's groundbreaking ceremony on May 21 in Troy, Alabama, for the construction of a Munitions Production Center. Company President and CEO Jim Taiclet stated in a press release that the company has invested over $1 billion in expansion. The facility, known as "Building 47," will add 87,000 square feet of production space dedicated to manufacturing THAAD interceptors, a weapon system capable of destroying missiles by colliding with them before they reach their intended targets and intercepting threats both inside and outside the atmosphere.
The Munitions Production Center will also accommodate future work on the "Next Generation Interceptor" (NGI) currently under development. The Department of Defense's Missile Defense Agency selected Lockheed to develop the NGI in April 2024. This expansion is part of Lockheed's over $9 billion investment to meet munitions demand by 2030, including the construction or upgrade of more than 20 facilities across the United States. The upcoming factory and contract will create "tens of thousands" of jobs in Lockheed's manufacturing, engineering, and technical trades, and boost its supply chain. Lockheed did not respond to requests for comment on the specific number of jobs to be created.
Lockheed has recently been signing agreements and establishing R&D partnerships to accelerate production. Last week, the company signed an agreement with General Motors' defense subsidiary to strengthen domestic manufacturing and the defense industrial base. The two companies did not disclose specific plans, but Steve duMont, President of General Motors Defense, stated that initial collaboration projects will be identified in the coming weeks.
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