TROY, Alabama, May 21, 2026, 18:02 CDT
- Lockheed Martin has started construction on an 87,000-square-foot munitions center in Troy, Alabama, where the company plans to grow its THAAD interceptor operations and gear up for Next Generation Interceptor production.
- U.S. defense officials are pushing contractors to boost missile production, following drawdowns and new industry-wide framework deals.
Lockheed Martin started construction Thursday on a new munitions plant in Alabama, moving ahead with part of its $9 billion plan to ramp up production as demand grows in Washington for more air-defense missiles for the U.S. and partners.
Lockheed Martin has opened an 87,000-square-foot building, called Building 47, to expand production for Terminal High Altitude Area Defense (THAAD) interceptors, and plans to use it for future Next Generation Interceptor work on long-range missile threats. Lockheed said this will almost double the production space at its Troy campus.
Missile inventories are on the front line now, not just a budget issue. Reuters in March said the Pentagon had signed framework deals with BAE Systems, Lockheed, and Honeywell to lift munitions production, with U.S. officials saying the military was moving to a “wartime footing.” Reuters
Lockheed Martin plans to spend over $9 billion by 2030 to ramp up munitions output and boost or build more than 20 sites around the U.S. The new Alabama plant is part of that push. Lockheed said it expects to add jobs at the Alabama facility over the next three years, adding to its almost 4,000 current employees in the state.
Lockheed Martin is “ready now,” CEO Jim Taiclet said. He said the firm spent “well over a billion dollars” building out the expansion. Michael Duffey, under secretary of war for acquisition and sustainment, called the partnership “critical to surging” munitions capacity. Investing News Network (INN)
Reuters also reported around $1.25 billion was spent even before contracts were done. Duffey, present at the ceremony, said multiyear deals help firms invest with more confidence: “talk becomes action,” he said. Reuters
THAAD is built to intercept ballistic missiles in the final phase of flight, both inside and outside the atmosphere. Lockheed said the U.S., UAE and Saudi Arabia use the system, which is tied into the Patriot air-defense system’s PAC-3 Missile Segment Enhancement interceptor.
Lockheed is expanding production on several missile lines, not just THAAD. The company will take THAAD interceptor output to 400 a year from 96, and plans to more than triple yearly Patriot PAC-3 missiles to 2,000. Precision Strike Missile production is set to rise fourfold, according to .
Lockheed started up a new supplier conference series this month, bringing over 150 suppliers to Dallas for meetings on ramping up output of PAC-3 MSE, THAAD, and Precision Strike Missile systems. Defence Industry Europe said these in-person and online meetings are set to go on each month.
The field is crowded. BAE Systems produces the THAAD seekers, the sensors that guide interceptors to their targets. Northrop Grumman and RTX had also fought for work on the Next Generation Interceptor program, but the Missile Defense Agency chose Lockheed to go ahead with development in 2024.
Timing is the risk. Lockheed says new factories won’t turn out missiles right away — jobs and output will be added over several years, and there are still hurdles: contract awards, funding from Congress, and steady work from suppliers all have to come together. A Washington Post report, using Defense Department sources, said recent U.S. use of high-end interceptors during the Israel-Iran fighting has raised alarms about American missile-defense stocks. “Striking” is how Stimson Center analyst Kelly Grieco described the numbers The Washington Post.
Lockheed shares held steady late Thursday at $522.79. RTX traded higher, while Northrop Grumman inched down, market data showed. The action pointed to investors already factoring in rising missile demand and a longer ramp ahead for production.
