Key Facts
- ✓ Lockheed Martin plans to increase annual Patriot missile production from 600 to 2,000.
- ✓ The new agreement with the Pentagon covers a seven-year period.
- ✓ The increase is driven by surging demand due to conflicts in Ukraine and the Middle East.
- ✓ Lockheed Martin delivered 620 interceptors in 2025, a 20% increase from 2024.
- ✓ The deal requires Congressional approval.
Quick Summary
Lockheed Martin has announced a major expansion of its Patriot missile production capabilities. The defense contractor reached a new agreement with the US Department of Defense to dramatically increase the output of air defense interceptors. This move is designed to address the growing global demand for advanced defense systems.
The new plan aims to more than triple the annual manufacturing rate. Production of the PAC-3 Missile Segment Enhancement (MSE) interceptors will increase from roughly 600 to 2,000 per year. This ramp-up will occur over a seven-year period, with missiles destined for US, allied, and partner forces.
Details of the Pentagon Agreement
The US Department of Defense and Lockheed Martin have established a framework to 'rapidly accelerate' the production and delivery of interceptors. This agreement is a foundational step toward a seven-year supply contract. According to the Pentagon, this deal is a direct result of its new Acquisition Transformation Strategy, which prioritizes increased production capacity for key munitions.
The strategy, revealed in November by Secretary of Defense Pete Hegseth, focuses on awarding larger and longer contracts for 'proven systems.' This approach allows defense companies to invest more heavily in the industrial base. The Pentagon stated that the framework 'establishes the basis for negotiating a seven-year supply contract' that will require Congressional approval.
Michael Duffey, the undersecretary of defense for acquisition and sustainment, commented on the significance of the deal. He stated, "This framework agreement marks a fundamental shift in how we rapidly expand munitions production and magazine depth, and how we collaborate with our industry partners."
"will create unprecedented capacity for PAC-3 MSE production, delivering at the speed our nation and allies demand."
— Jim Taiclet, Lockheed's chairman and CEO
Rising Global Demand 🌍
The decision to increase production comes amid surging demand for capable air defenses. This demand has been fueled by large-scale missile attacks observed in Russia's ongoing war against Ukraine and various conflicts in the Middle East. The American-made MIM-104 Patriot system has been central to both scenarios.
In Ukraine, the Patriot system serves as the backbone of the country's defense against Russian missile strikes. It functions as the top layer of an air defense network largely supported by Western technology. Additionally, the US military has relied on the Patriot to intercept attacks from Iran. The high usage rate has raised concerns regarding the future stockpiles of interceptors for US and allied arsenals.
Lockheed Martin's Chairman and CEO, Jim Taiclet, emphasized the company's commitment to meeting this demand. He said the company "will create unprecedented capacity for PAC-3 MSE production, delivering at the speed our nation and allies demand."
Production Increases and Future Outlook
Lockheed Martin has already been ramping up its manufacturing capabilities. Over the past two years, the company boosted PAC-3 MSE production by more than 60%. In 2025, the contractor delivered 620 missile interceptors, marking a 20% increase from the previous year.
The PAC-3 MSE variant is considered a 'cornerstone' of US and European missile defense. Lockheed Martin currently supplies its PAC-3 interceptors to 17 different countries. The dramatic increase to 2,000 units annually represents a significant step in securing these alliances.
The agreement signals a fundamental shift in how the Pentagon collaborates with the defense industry. By securing long-term contracts, the Department of Defense aims to ensure that the industrial base has the resources necessary to scale up production quickly.
"This framework agreement marks a fundamental shift in how we rapidly expand munitions production and magazine depth, and how we collaborate with our industry partners."
— Michael Duffey, undersecretary of defense for acquisition and sustainment


