Seven-year agreement aims to rapidly expand U.S. missile defense capacity under President Donald Trump’s Golden Dome initiative.
By yourNEWS Media Newsroom
The U.S. Department of War and Lockheed Martin on Jan. 6 announced a seven-year strategic partnership designed to dramatically expand production of Patriot surface-to-air missiles, a cornerstone of President Donald Trump’s Golden Dome missile defense initiative.
Under the agreement, Lockheed Martin will increase annual production capacity of its PAC-3 Missile Segment Enhancement (MSE) interceptors from roughly 600 units to 2,000. The PAC-3 MSE is capable of intercepting and destroying advanced ballistic missile threats, including intercontinental ballistic missiles, during midflight.
The expansion is tied directly to the Golden Dome initiative, unveiled in May 2025, which seeks to establish a next-generation missile defense architecture to shield the United States from overseas nuclear missile attacks. The legislative framework for the program was outlined in the Golden Dome Initiative.
Lockheed Martin said it has already boosted PAC-3 MSE production by 60 percent over the past two years and delivered 620 Patriot missiles in 2025 alone. The Department of War said the ramp-up reflects sustained demand from the U.S. military, allied nations and international partners, while also strengthening America’s defense industrial base.
“This framework agreement marks a fundamental shift in how we rapidly expand munitions production and magazine depth, and how we collaborate with our industry partners,” said Michael Duffey, the Department of War’s under secretary for acquisition and sustainment. “Lockheed Martin’s willingness to help pioneer this transformative acquisition model is a win-win for the taxpayer, our national security, and the rebuilding of the industrial base needed for the Arsenal of Freedom.”
The announcement coincided with the second day of Secretary of War Pete Hegseth’s multistate “Arsenal of Freedom” tour, an effort to rally support for domestic defense manufacturing. The tour, detailed here, began Jan. 5 at Huntington Ingalls Industries’ Newport News, Virginia, shipyard, the nation’s largest military shipbuilding facility and the site where two nuclear-powered Ford-class aircraft carriers are currently under construction.
“We’re deploying cutting-edge technologies at a speed not seen in generations,” Hegseth told workers and executives at the shipyard. “We’re making historic, multigenerational investments in the capabilities we’ll need to dominate the future fight, with urgency that matches the moment.”
According to the Department of War, the new framework allows both the government and Lockheed Martin to share in the financial benefits generated by higher production volumes. Lockheed said the agreement provides predictable long-term demand, encourages industry investment, and improves efficiency through a collaborative financing model that helps preserve capital.
The department also plans to negotiate seven-year contracts with key suppliers of PAC-3 missile components to ensure the production surge can be sustained. Officials said the approach will serve as a template for future munitions contracts, subject to congressional approval, aimed at replenishing U.S. stockpiles and reinforcing the nation’s defense manufacturing capacity.
“We appreciate the Department of War’s leadership in advancing acquisition reform,” said Jim Taiclet, Lockheed Martin’s chairman, president and chief executive officer. “This first-of-its-kind approach builds on years of collaboration to bring commercial practices into major defense programs. It will create unprecedented PAC-3 MSE production capacity, delivering at the speed our nation and allies require while providing value for taxpayers and shareholders.”
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