The U.S. government awarded Lockheed Martin a contract valued at up to $58.62 billion. This agreement covers a seven-year production period. The undefinitized contract action allows work to begin while final terms are negotiated. The deal adds a $53.86 billion modification to a previous award. Lockheed Martin received the initial $4.7 billion portion of the contract in April.
Lockheed Martin will triple its production capacity for Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement (MSE) interceptors. The company expects to reach this production level by the end of 2030.
Soaring demand from the U.S. and allied nations driven by global conflicts necessitated the expansion. Munitions stockpiles remain strained by ongoing international warfare.
The contract will create hundreds of jobs at the final assembly facility in Camden, Arkansas.