Pentagon Awards Lockheed Martin, Northrop Grumman $93.6 Billion Missile Production Deal

The US Department of War has signed framework agreements with Lockheed Martin and Northrop Grumman to increase missile production. The deals aim to triple annual output of PAC-3 Patriot interceptors and quadruple production of THAAD missile defense components.

More than $3 billion has been committed to Northrop Grumman alone for solid rocket motors and safety devices, establishing the company as a second source for PAC-3 components. The Pentagon's decision to bring in Northrop as an additional supplier reduces single-point-of-failure risk in the supply chain.

The agreements build on earlier commitments made in 2026, which included up to $58.6 billion earmarked for Patriot interceptor production and $35 billion designated for THAAD systems. The new frameworks layer on top of those figures, focusing specifically on supply chain bottlenecks like solid rocket motors and structural components.