Northrop Grumman lands $3B Pentagon deal, tripling PAC-3 missile motor production

Northrop Grumman announced a $3 billion framework deal with the Pentagon on August 3, 2026. The agreement focuses on increasing solid rocket motor production for Patriot PAC-3 and THAAD interceptors. This seven-year contract establishes Northrop as a second supplier for PAC-3 motors.

L3Harris previously served as the sole supplier for these components. The deal allocates $2 billion for PAC-3 motor production at the Allegany Ballistics Laboratory in West Virginia. Another $1 billion will fund THAAD motor production at Northrop’s San Diego facility.

The Pentagon aims to triple PAC-3 production through this agreement. Officials also expect the deal to quadruple THAAD interceptor output. This initiative uses multiyear agreements to strengthen the munitions industrial base and accelerate production.