Troy, Alabama, May 25, 2026, 15:01 CDT
Lockheed Martin has started construction on an 87,000-square-foot production facility in Troy, Alabama, aiming to ramp up Terminal High Altitude Area Defense interceptor production as Pentagon demand rises to replenish missile inventories. The new Building 47 will focus on THAAD interceptors and is expected to play a role in future Next Generation Interceptor work.
U.S. missile-defense orders are climbing after the Ukraine war and violence with Iran. The Washington Post said U.S. troops used over 200 THAAD interceptors to protect Israel—about half the Pentagon’s stock, according to U.S. officials.
Lockheed’s Alabama work is linked to a January framework agreement, which is a long-term plan but still needs money in actual contracts. The deal aims to lift THAAD interceptor production from 96 units a year up to 400 over seven years. Lockheed also has deals to boost output of its Patriot PAC-3 interceptors and Precision Strike Missiles.
THAAD, a missile-defense system, is designed to knock out incoming ballistic missiles late in their flight, whether they’re still in the atmosphere or just outside it. The Congressional Research Service says it works with “hit-to-kill” tech—using a direct collision to destroy its target, not an explosion. Every CRS Report
Pentagon acquisition chief Michael Duffey called the partnership “critical to surging” munitions output at the groundbreaking. Lockheed CEO Jim Taiclet said the firm was “ready now” to ramp up, citing more than $1 billion in investments. Jerusalem Post
Lockheed is looking to spend $8 billion to $9 billion on munitions production facilities through 2030, CEO Taiclet said. That includes $900 million to $1.1 billion targeted for Troy. The company also expects to add around 4,500 jobs nationwide as part of the ramp-up.
Supply chain effects are spreading and competitors are responding. In March the Pentagon said it made a deal with BAE Systems and Lockheed to increase seeker output for THAAD by four times. Raytheon, which is part of RTX, has its own Pentagon deals to ramp up Tomahawk, AMRAAM and Standard Missile lines.
Kelly Grieco, a senior fellow at the Stimson Center, told The Washington Post the interceptor numbers were “striking.” She said the U.S. now has a thin THAAD magazine and production can’t keep up with demand. The shortage isn’t just a theory for U.S. allies in Asia. Japan and South Korea rely on U.S. missile-defense guarantees. The Washington Post
There’s a hitch. These framework deals still need Congress to authorize and fund them, and suppliers haven’t all signed on yet. So the new plant shows planned capacity, not quick stockpile help.
Lockheed’s Troy facility adds capacity for its Next Generation Interceptor project, a U.S. missile-defense effort for long-range ballistic threats. The company said it has more Alabama expansions ahead connected to NGI, the AGM-158, and Air-Launched Rapid Response Weapon programs.
Lockheed closed at $533.24 on Friday. U.S. markets stayed shut Monday for Memorial Day, with the NYSE and Nasdaq scheduled to open again Tuesday.
The new plant isn’t really a celebration yet. It marks how different the missile-defense sector looks now. Demand is clear. Making interceptors quick enough from long-term deals, factory floor, and supply contracts is trickier.
