US signs $59 billion contract with Lockheed Martin to triple Patriot missile production by 2030

The US Department of War has awarded American defense contractor Lockheed Martin a contract valued at approximately $59 billion to boost the production of PAC-3 interceptor missiles for Patriot air defense systems.

According to a report by Bloomberg, the new agreement expands upon a contract signed in April. The initial $4.7 billion award given to the company in April was amended to add $53.86 billion, covering a full seven-year period.

Under the plans, annual production of PAC-3 MSE missiles is projected to increase from roughly 600 units to 2,000 units by 2030. A single unit of these missiles costs approximately $4 million.

Lockheed Martin announced that it will hire 650 new employees to meet the production demands under the order. Following these hires, the workforce dedicated to Patriot missile manufacturing at the company’s facility in Camden, Arkansas, will reach 1,850 personnel.

Bloomberg noted that the contract forms part of US President Donald Trump’s administration program to ramp up defense manufacturing and replenish depleted stocks of missiles and interceptors used during the war with Iran.

Missile production expansion program launched in 2024

The initiative to scale up the production volume of Patriot missiles was launched in 2024. At that time, the US military signed a $4.5 billion contract with Lockheed Martin for the production of 870 PAC-3 MSE interceptors.

US military officials stated then that the deal would expand production capacity for missiles intended not only for the US armed forces, but also for Ukraine and other allies.

However, Lockheed Martin subsequently reported that it could not guarantee delivery timelines for interceptor missiles to allied nations due to rapidly surging demand.

In July of this year, the company announced that it was developing the lower-cost PAC-3 ACE missile, intended to complement the ammunition lineup for Patriot systems.