WASHINGTON, D.C. — The Department of Defense signed agreements with Lockheed Martin, Raytheon and BAE Systems to expand production of missile interceptors and Tomahawk missiles. The agreements include plans to quadruple production of Terminal High Altitude Area Defense interceptor seekers and increase Patriot interceptor manufacturing from 600 to 2,000 units annually.

Lockheed Martin and the Pentagon reached a seven-year agreement to boost PAC-3 interceptor production from 600 per year to 2,000 per year. A Lockheed Martin spokesperson said the company planned to increase THAAD interceptor production from 96 per year to over 400 per year over the next seven years.

The Defense Department announced an agreement with Lockheed Martin and BAE Systems to quadruple production of seekers for Terminal High Altitude Area Defense interceptors. The infrared seekers for THAAD interceptors are made by BAE Systems and enable interceptors to identify and lock onto targets.

A Raytheon spokesperson said the company plans to boost SM-6 missile production to over 500 annually, up from 125 per year. The spokesperson said Raytheon is increasing production of SM-3 Block IB and SM-3 Block IIA interceptors, doubling or quadrupling their existing production rates.

A Raytheon spokesperson said the company will increase production of Tomahawk Land Attack Missiles and Maritime Strike variants to over 1,000 per year. It can take up to two years to produce a Tomahawk missile.

Officials said that high expenditure rates of SM interceptors are draining stockpiles and prompting the Department of Defense to pursue expanded production capacity. Officials have raised concerns over insufficient weapon stockpiles and production times.

The US Navy has fired hundreds of SM interceptors in the Middle East since October 2023. Over 135 Tomahawk missiles have been used against the Houthis. In June 2025, THAAD intercepted Iranian missiles launched at Israel, expending between 100 and 150 interceptors during the 12-day engagement.

Each THAAD interceptor costs about $12.7 million, according to Missile Defense Agency budgets. Each SM-6 missile costs about $4 million, while each Tomahawk missile costs around $1.3 million.

THAAD is designed to intercept short-, medium-, and intermediate-range ballistic missiles during the final phase of flight. SM-6 interceptors are suited for defense against aircraft and cruise missiles and for terminal defense against ballistic missiles.

Patriot batteries detect and intercept ballistic missiles, cruise missiles, drones, and aircraft. In recent years, Patriot batteries have been used to defend against Iranian missile and drone attacks targeting Israel and other locations in the Middle East.