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President Donald Trump’s Battle Division is supercharging missile-defense manufacturing, signing framework agreements with Lockheed Martin and Northrop Grumman to broaden manufacturing capability for elements utilized in two protection programs.
The offers intention to quadruple output of Terminal Excessive Altitude Space Protection (THAAD) interceptor structural elements and help a threefold enhance in Patriot Superior Functionality-3 (PAC-3) manufacturing, in keeping with a Battle Division launch Monday.
“Constructing the Arsenal of Freedom requires sturdy, dynamic provide chains at each stage of the commercial base,” Michael Duffey, undersecretary for acquisition and sustainment, wrote in an announcement. “Framework agreements with munition elements suppliers like Northrop Grumman are very important to accelerating the tripling of PAC-3 and quadrupling of THAAD interceptor manufacturing.”
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This picture from Lockheed Martin’s media equipment showcases a rendering of a THAAD missile protection system. (Lockheed Martin)
The division stated the agreements would give suppliers longer-term demand commitments wanted to put money into tooling, facility upgrades and workforce growth.
Monetary phrases and manufacturing timelines weren’t included within the Battle Division announcement, however Northrop Grumman stated it entered into agreements price a mixed $3 billion. The offers embody a $2 billion settlement to provide rocket motors and security units and a $1 billion settlement to extend deliveries of THAAD elements.
“Our long-term investments in breakthrough manufacturing applied sciences and resilient provide chains allow us to pivot from regular manufacturing to a manufacturing surge in report time,” Northrop Grumman Vice President Ben Davies wrote in an announcement. “As one in all America’s main producers of strong rocket motors, we’re supporting the administration’s push to speed up munitions output.”
“It’s a mission-critical leap ahead that ensures America’s protection edge stays sharper, sooner, and farther forward of world threats,” Davies continued.
DEFENSE CONTRACTOR L3HARRIS PLANS TO BUY AEROJET ROCKETDYNE FOR $4.7B
| Ticker | Safety | Final | Change | Change % |
|---|---|---|---|---|
| LMT | LOCKHEED MARTIN CORP. | 586.67 | +3.56 | +0.61% |
| NOC | NORTHROP GRUMMAN CORP. | 551.87 | +8.85 | +1.63% |
| LHX | L3HARRIS TECHNOLOGIES INC. | 279.03 | +1.94 | +0.70% |
Northrop stated it plans to boost PAC-3 strong rocket motor manufacturing at its Allegany Ballistics Laboratory in West Virginia, the place the corporate has doubled tactical motor capability since 2021 and expects to triple manufacturing functionality by 2027. It’s going to help U.S. Military plans to extend annual PAC-3 MSE missile manufacturing from about 600 models to 1000’s for U.S. forces and allied international locations.
The deal establishes a second supply for strong rocket motors and will increase manufacturing of ignition security units. The Pentagon stated including one other rocket-motor provider would enhance competitors and scale back supply-chain dangers.
Northrop can be doubling strong rocket motor capability at its Utah services and growing capability by 25% at its Elkton, Maryland, plant.
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Michael Duffey, U.S. undersecretary of Protection for Acquisition and Sustainment, and NATO Secretary-Common Mark Rutte, talked missile protection on the NATO Summit Protection Trade Discussion board (NSDIF) in Ankara, Turkey, on July 7, 2026. (Kerem Uzel/Bloomberg)
Underneath the THAAD settlement, Northrop will enhance month-to-month deliveries of structural elements, together with interceptor shell cores, aft bulkheads and heat-shield assemblies. The corporate has equipped elements for the missile-defense system since 2002.
Northrop stated it has invested greater than $2 billion in munitions-related applied sciences and services since 2019, together with greater than $1 billion for strong rocket motor manufacturing.
Lockheed introduced a seven-year contract modification for as much as $53.86 billion for PAC-3s. The award brings the overall multiyear contract worth to $58.62 billion, following the $4.7 billion UCA awarded in April for yr one.
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The agreements had been developed with the Munitions Acceleration Council, the Financial Protection Unit, the Missile Protection Company and the Workplace of the Underneath Secretary for Acquisition and Sustainment, the Battle Division stated.
