The U.S. Department of War has allocated $35 billion for a significant increase in the production of interceptor missiles for the THAAD system, as stipulated in a long-term contract with Lockheed Martin.
The agreement has a seven-year duration and calls for a fourfold increase in interceptor production. It is a continuation of the framework agreement signed in January 2026, which did not specify a price.
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According to Lockheed Martin, this order represents "the long-term demand signal needed to accelerate production capacity, strengthen the defense industrial base and deliver critical missile defense capability at speed and scale for the U.S. and its allies."
It should be noted that the currently known annual production volume of THAAD interceptor missiles is 96 units per year. This means that by 2033, production is expected to reach approximately 400 units annually.
At the same time, even these projected levels of annual production, expected to be reached as early as the next decade, should be compared to the rate at which THAAD missiles are expended during active combat operations, especially if those operations are prolonged.
Specifically, during the war against Iran, whose most intense phase lasted from February 28 to April 7, 2026 (39 days), CSIS estimates that 190–290 missiles were used against the THAAD system out of a total stockpile of 360.
In other words, while it currently takes 2–3 years to replenish U.S. missile defense stocks expended over a 39-day period, by 2033 it will take only 6–9 months.
The primary purpose of the THAAD system is to intercept short- and medium-range ballistic missiles at altitudes of approximately 100 km. The interceptor itself is a single-stage solid-fuel missile, 6.1 meters long and with a launch weight of approximately 900 kg, capable of reaching speeds of up to Mach 8.2.
After the engine has burned out, the Kill Vehicle separates from it and uses infrared homing to lock onto the target, as well as a DACS system for maneuvering that controls roll, pitch, and yaw using six thrusters. The target is destroyed through kinetic interception using hit-to-kill technology, and the missile has no warhead.
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