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$35 Billion THAAD Seven-Year Procurement Award Propels Acceleration Of Critical Missile Defense Interceptor Production

Today, the U.S. government awarded Lockheed Martin (NYSE: LMT) a seven-year undefinitized contract action (UCA) for up to $35 billion to quadruple production of Terminal High Altitude Area Defense (THAAD) interceptors. The award is one of the first major multiyear procurement contracts executed under the Department of War's Acquisition Transformation Strategy and represents one of the first full-scale transitions from framework agreement to contract execution under the initiative. It demonstrates Lockheed Martin's commitment to building the Arsenal of Freedom.

The contract puts into action the THAAD framework agreement signed in Januarybetween the Department of War and Lockheed Martin, providing 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.

The award comes weeks after Lockheed Martin broke ground on a new Munitions Production Center in Troy, Alabama, as part of the company's more than $9 billion investment through 2030. This investment is already delivering tangible results to meet heightened munitions demand, including more than 20 new or modernized facilities across the United States. Lockheed Martin also recently opened the Next Generation Interceptorfacility in Courtland, Alabama, and the Munitions Acceleration Center in Camden, Arkansas.

WHY IT MATTERS

THAAD is the only U.S. system designed to intercept threats both inside and outside the atmosphere, providing a critical layer of missile defense. Its performance has been demonstrated in operations including Operation Epic Fury, where it continues to defend forces and key infrastructure against evolving threats.

EXPERT PERSPECTIVE

"This award reflects our shared vision with the Department of War to strengthen America's Arsenal of Freedom through a transformational shift to multiyear procurement," said Tim Cahill, president, Lockheed Martin Missiles and Fire Control. "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."

ADDITIONAL CONTEXT

  • Acquisition Transformation Leadership: Lockheed Martin was the first in the industry to announce a framework agreement for munitions acceleration under the Department of War's Acquisition Transformation Strategy. Since January, landmark framework agreements have been established to expand production capacity for PAC-3® MSE, the THAAD interceptor and Precision Strike Missile (PrSM). In April, the U.S. government awarded Lockheed Martin a $4.7 billion contract to continue critical accelerated production of PAC-3 MSE this year.
  • American Job Growth: Lockheed Martin continues to expand its workforce, creating tens of thousands of high-quality American jobs across manufacturing, engineering and skilled trades. These investments ensure America and its allies have the proven capabilities needed to protect people, infrastructure and freedom around the globe.
  • Supply Chain Resilience: Lockheed Martin is strengthening resilience of our supply chain, deepening collaboration with suppliers and driving innovation across operations. Lockheed Martin is engaging regularly with suppliers critical to scaling munitions production, focusing on building stronger relationships, emphasizing speed and driving solutions to better prepare for current and future threats.

THAAD production to quadruple
 
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All that bragging of not needing china REE only to become smuggler lol. China has a full monopoly on rare earths.
 
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Yawn. It's only going to be a dozen or so and they will be used for training until the APG-85 is ready. Lot 17 F-35's which consist of 190-200 are APG-85 capable.

- The U.S. Marine Corps thus far has received six F-35B fighters without radars, as the service waits on Northrop Grumman‘s delivery of the AN/APG-85 radar, which is to replace the current APG-81, also by Northrop Grumman.

“The Marine Corps has been accepting airplanes with no radar in it, is that correct?” Sen. Mark Kelly (D-Ariz.), ranking member of the Senate Armed Services Committee’s (SASC) airland panel, asked Marine Lt. Gen. Gregory Masiello, the F-35 program executive officer, at a June 23 hearing.

“We have accepted six aircraft for the Marine Corps that do not have a radar installed,” Masiello replied. “That is correct.”

Kelly then stated that his assumption was that the Marines “want to wait for the APG-85.”

“They do,” Masiello said.

Radar mountings in the F-35’s nose are different for the APG-81 and the APG-85 radar–a difference which has helped complicate fielding of the new radar which was to deliver with F-35 Lot 17.

The Air Force has been considering an APG-81/APG-85 dual-mount bulkhead, though the latter may take two years to field.

The service’s fiscal 2027 future years defense plan (FYDP) contains $133 million in fiscal 2031 for retrofitting 14 F-35As with APG-85s–a unit cost of $9.5 million per radar, and outside the FYDP the service said it plans to spend about $1.6 billion to retrofit another 167 jets with the APG-85.

The Air Force, Navy, and Marine Corps have 832 F-35s out of a global inventory of more than 1,300 on 42 bases and 13 ships–10 U.S. ones and three allied ones, according to the F-35 program.

The APG-85 is critical to the 55 upgrades in the Block 4 program–22 of which have fielded so far, including seven last year, and six on target for this year, Masiello testified on June 23. For full functionality, the APG-85 and Block 4 require 62 kilowatts to 80 kilowatts (kW) of cooling, however, versus the 32 kW on the plane now.-

The APG-85 is in a whole other lever of power output and capability and so is the APG-81 compared to foreign fighter AESA's including their supposed "GaN" which doesn't have the capabilities of the APG-81 a non-GaN AESA.
 
An old online buddy posted this about the article....


"Now that was interesting article with a lot of interesting details. What caught my attention wasn't so much that some F-35Bs were delivered without radars, but the implications of the cooling numbers discussed during the hearing.

If APG-85 were simply an APG-81 with GaN T/R modules replacing older GaAs modules, I wouldn't expect such a dramatic increase in thermal requirements. Modern GaN devices are substantially more efficient (often around 50-60% PAE versus roughly 25-35% for older GaAs designs), so a straight technology refresh would tend to reduce waste heat for a given RF output.

The fact that Kelly was talking about eventual PTMS capability in the 62-80 kW range suggests that APG-85 is doing much more than just generating more radar power. My guess is that we're looking at a combination of significantly higher RF output, much more onboard signal processing, and greatly expanded electronic attack/electronic warfare functionality.

For comparison, if APG-81 has roughly 1,676 T/R modules and produces on the order of 15-20 kW RF output, then a similarly sized GaN array could potentially produce 35-50 kW RF output without requiring proportionally more electrical input. The interesting question is therefore not "why does a GaN radar need more cooling?" but rather "what additional functions are consuming all that power?"

The nose structure modifications are another clue. If this were merely a drop-in GaN replacement for APG-81, redesigning internal bulkheads would seem excessive. That points toward significant hardware changes beyond the T/R modules themselves. Basically APG-85 could be just APG-81 with GaN modules, which would not require any changes to the structures. And there has to be significant reason to do such structural change.

My suspicion is that APG-85 is much less a conventional fighter radar upgrade and more a next-generation electromagnetic warfare aperture that happens to perform radar functions incredibly well. In that context, the cooling figures start to make a lot more sense. The biggest gains may (and like will) be in electronic attack, simultaneous radar/EW operation, LPI performance, and processing capacity rather than simply a 20-40% increase in detection range.

The fact that the USMC is apparently willing to park aircraft without radars rather than accept APG-81-equipped jets also suggests they view APG-85 as a major capability step, not an incremental refresh. And most of that added capability does not come from being a better radar. It's likely something way beyond that. What is written in that article suggests that from enemy PoV an F-35 with APG-85 will totally crush the enemy situational awareness while maintaining a much better situational awareness than F-35 with APG-81 can. And that is scary given how good F-35 with APG-81 already is."
 
Yawn. It's only going to be a dozen or so and they will be used for training until the APG-85 is ready. Lot 17 F-35's which consist of 190-200 are APG-85 capable.

- The U.S. Marine Corps thus far has received six F-35B fighters without radars, as the service waits on Northrop Grumman‘s delivery of the AN/APG-85 radar, which is to replace the current APG-81, also by Northrop Grumman.

“The Marine Corps has been accepting airplanes with no radar in it, is that correct?” Sen. Mark Kelly (D-Ariz.), ranking member of the Senate Armed Services Committee’s (SASC) airland panel, asked Marine Lt. Gen. Gregory Masiello, the F-35 program executive officer, at a June 23 hearing.

“We have accepted six aircraft for the Marine Corps that do not have a radar installed,” Masiello replied. “That is correct.”

Kelly then stated that his assumption was that the Marines “want to wait for the APG-85.”

“They do,” Masiello said.

Radar mountings in the F-35’s nose are different for the APG-81 and the APG-85 radar–a difference which has helped complicate fielding of the new radar which was to deliver with F-35 Lot 17.

The Air Force has been considering an APG-81/APG-85 dual-mount bulkhead, though the latter may take two years to field.

The service’s fiscal 2027 future years defense plan (FYDP) contains $133 million in fiscal 2031 for retrofitting 14 F-35As with APG-85s–a unit cost of $9.5 million per radar, and outside the FYDP the service said it plans to spend about $1.6 billion to retrofit another 167 jets with the APG-85.

The Air Force, Navy, and Marine Corps have 832 F-35s out of a global inventory of more than 1,300 on 42 bases and 13 ships–10 U.S. ones and three allied ones, according to the F-35 program.

The APG-85 is critical to the 55 upgrades in the Block 4 program–22 of which have fielded so far, including seven last year, and six on target for this year, Masiello testified on June 23. For full functionality, the APG-85 and Block 4 require 62 kilowatts to 80 kilowatts (kW) of cooling, however, versus the 32 kW on the plane now.-

The APG-85 is in a whole other lever of power output and capability and so is the APG-81 compared to foreign fighter AESA's including their supposed "GaN" which doesn't have the capabilities of the APG-81 a non-GaN AESA.
Top-tier Chinese fighters like J-20, J-16, J-15T , and J-35 already utilized GaN-based AESA arrays since 2022 while AN/APG-85 systemwon't begin production until April 2028. 🤣 Ask yourself who produces 98 percent of the gallium.
 

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