Lockheed Martin awarded $2.8 billion THAAD development contract
The THAAD system has been designed to defend forces and population centres against short-range and medium-range ballistic missiles. (Photo: Lockheed Martin)
The contract amount for the Terminal High Altitude Area Defense (THAAD) Weapon System will support its continued development over the next five years, with two options to extend for up to 10 years.
Lockheed Martin has been awarded a US$2.8 billion contract from the US Missile Defense Agency (MDA) for a follow-on development contract for the Terminal High Altitude Area Defense (THAAD) weapon system.
The contract will support the continued development of the THAAD system over the next five years, with two opportunities to extend the contract for a period of 10 years. The $2.8 billion has been noted as the ceiling of the contract, meaning the total value if both options to extend are exercised.
This latest contract comes after the THAAD Advanced Capability contract was awarded to Lockheed Martin in 2012.
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“The combat-proven THAAD interceptor is an effective deterrent against a range of ballistic missile threats, and we are pleased to continue advancing its capabilities for our current and future customers,” said Dan Nimblett, VP upper tier integrated air and missile defense at Lockheed Martin Missiles and Fire Control.
According to Shephard Defence Insight, THAAD is effective at a range of 200km and altitude up to 150km. It has been designed to counter mass raids with high firepower – up to 72 interceptors per battery.
In October 2024, the US committed to a ‘significant undertaking’ when it deployed a THAAD battery to Israel to bolster its air defences.
Lockheed Martin announced on 29 January that it had delivered its 900th THAAD interceptor to the MDA.
According to the company, the weapon system has a perfect flight record with 17 for 17 intercepts, sixteen of those being a THAAD interceptor.
Related Programmes in Defence Insight
THAAD (Terminal High Altitude Area Defense) (Procurement)
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