Lockheed Martin strikes $35B deal to restock depleted THAAD interceptor stockpile

The Pentagon has awarded Lockheed Martin a seven-year contract worth up to $35 billion to churn out hundreds of Terminal High Altitude Area Defense (THAAD) interceptors a year, in an effort to replenish dwindling U.S. munitions stockpiles.

Announced Wednesday, the award means Lockheed will receive an initial $842.9 million, according to the Missile Defense Agency (MDA). Used in the Iran war, THAAD interceptors are capable of neutralizing ballistic missiles outside the Earth’s atmosphere and can cost more than $12 million each to produce.

The deal comes the same day President Trump met with the CEOs of Lockheed, Boeing and Honeywell at the White House, a gathering intended to push defense contractors to speed up weapons production after many of Washington’s highly sophisticated missiles and interceptors were depleted in the Iran war. 

The contract also follows a $4.7 billion deal with Lockheed in April to speed up production of Patriot missiles. Both contracts are “undefinitized,” however, meaning they........

© The Hill