Pentagon announces framework agreements to expand Patriot and THAAD production

Defense Department expands missile production agreements

The Defense Department announced Monday two framework agreements between General Dynamics Ordnance and Tactical Systems and Lockheed Martin aimed at boosting production of Terminal High Altitude Area Defense (THAAD) and Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement interceptors.

The agreements come amid escalating conflicts with Iran and Ukraine, which have drained S. stockpiles of both missile types, according to a July report from the Center for Strategic and International Studies. The think tank estimated that the S. has expended around 65% of its Patriot interceptor inventory and 38% of its THAAD interceptors. The S. is drawing down those supplies on two fronts: in Iran and through transfers of large stockpiles of Patriot air defense interceptors and Army Tactical Missile Systems to Ukraine.

CSIS experts noted that the diminished inventory also reduces the 's ability to wage war and defend against other adversaries, notably China in the western Pacific.

The S. recently marked six months of war with Iran, a conflict that President Donald Trump had estimated would last as little as five weeks at its outset. According to Defense News, with the Department of Defense's weapons cache dwindling, the Trump administration has turned its strategy away from military intervention and toward economic sanctions against Iran.

Details of the agreements

The framework agreements with General Dynamics and Lockheed would initiate seven-year procurement contracts to increase production quantities and accelerate delivery schedules for critical missile subcomponents, the DoD stated on Monday. The work includes tripling Patriot production and quadrupling THAAD interceptor production capacity. However, the Pentagon noted that funding for that surge would be subject to annual congressional appropriations.

Undersecretary of War for Acquisition and Sustainment Michael Duffey announced the deal, which is part of the department's broader effort to expand production of key systems, with an emphasis on air defense systems, from the defense industrial base. As part of the push, the department has sought to slash traditional hurdles that made entering the defense industrial base very challenging for new and small companies.

Pentagon officials under President Trump have instead emphasized the inclusion of new and emerging nondefense companies in this effort.

"Today's announcement represents an example of the evolution of how we partner with industry to expand the Arsenal of Freedom, outpace emerging threats, and ensure the Warfighter never faces a fair fight," Duffey said.

"General Dynamics and Lockheed Martin have answered the call. We are cutting red tape, shortening timelines, and rapidly scaling our domestic manufacturing capacity to deliver the advanced air and missile defense capabilities," he added.

The S. military has rapidly expended critical munitions over the course of the Iran war, which required the use of such air defense systems. Pentagon officials acknowledge the need to replenish and expand production capacity, but have denied that the military is facing a shortage that is impacting readiness.

Both the Patriot and THAAD air defense systems have protected S. troops during the war from Iranian ballistic missile attacks. Each interceptor missile for the Patriot and THAAD systems costs seven figures, let alone for the whole system, which is why the department is also looking for evolving technology and updated variants that will lower the manufacturing costs.