Lockheed Martin has a new, seven-year contract from the U.S. Missile Defense Agency to manufacture THAAD interceptor missiles, with a total value of $35.33 billion. The award is the first for Lockheed following the seven-year framework agreements that the Pentagon extended to three defense contractors in March, seeking to incentivize them to accelerate ballistic missile production.

Prior to the framework agreement, Lockheed drew a seven-year contract to triple its output of Patriot anti-ballistic missile systems.

"This new approach propels our efforts to strengthen the defense industrial base, expand production and deliver capabilities to the American warfighter at unprecedented speed and scale," according to Tim Cahill, president, Lockheed Martin Missiles and Fire Control.

The Terminal High Altitude Area Defense (THAAD) interceptor missiles have infrared sensors located in the nose to detect, track, and lock onto incoming ballistic missiles during their final, terminal phase. They involve high-sensitivity infrared technology that guides missiles to destroy threats by kinetic impact rather than explosives.

Lockheed will manufacture the missiles at a new plant under construction now in Troy, Ala., and at plants in Dallas, Sunnyvale, Calif., and Camden, Ark.

The MDA contract stated that missile production capacity will increase from 96 interceptors per year to 400 per year over seven years. Estimates place the total number of THAAD interceptors to be produced under the new award at 2,000 to 2,300 over seven years.

While extending longer-term contracts to the missile system manufacturers, the Trump Administration and the Pentagon are pressuring those firms to build out production capacity for the higher-volume missile stockpiles they aim to maintain.

During the current calendar year, Pentagon contracts with total face value estimated at $50- to $70 billion, for various different classes of ballistic missile systems.