The US Department of War (Pentagon) has signed a major contract worth $35 billion with Lockheed Martin to significantly increase production of advanced THAAD interceptor missiles.
According to the Pentagon, the seven-year contract is designed to increase the annual production capacity of THAAD missiles from 96 to about 400. American officials have said that the widespread use of the system has reduced the country’s strategic stockpile.
The THAAD system, each missile of which is estimated to cost more than $12 million, is considered one of the most important US missile defense systems and is used to intercept ballistic missiles.
Reports indicate that the increase in production of this system is being done to strengthen deterrence and compensate for the reduction in US weapons stockpiles.
