The US Missile Defense Agency has awarded Lockheed Martin a $2 billion contract to manufacture additional Terminal High Altitude Area Defense (THAAD) interceptors. The production will take place across facilities in Texas, California, Alabama, and Arkansas, with final delivery slated for December 1, 2029.
This procurement follows the depletion of nearly 25% of the US’s THAAD inventory during the recent 12-day conflict between Israel and Iran, according to a CNN report. Experts warn that stockpiles are diminishing rapidly, prompting urgent calls for replenishment. Former defense officials and policymakers, including Mara Karlin, have stressed the importance of accelerating interceptor production.
THAAD, developed by Lockheed Martin, is a mobile ground-based defense system that uses hit-to-kill technology to neutralize incoming ballistic threats. A single battery comprises six truck-mounted launchers, each loaded with eight interceptors—totalling 48 per unit. Each interceptor costs roughly $12 million.
With more than 900 interceptors already delivered, THAAD remains a vital element in America’s multi-layered missile defense strategy. It is deployed not only on US soil but also in South Korea, Guam, the UAE, Saudi Arabia, and Israel to counter regional threats.
