Defence Industry Europe
The United States Missile Defense Agency (MDA) has awarded Lockheed Martin a contract worth up to USD 2.81 billion for the continued development of the Terminal High Altitude Area Defense (THAAD) system. The agreement, which spans from 1 February 2025 to 31 January 2035, will focus on upgrading hardware and software, as well as initial fielding of new capabilities.
The contract builds on the previous Advanced Capability Development (ACD) programme, supporting the integration and testing of improvements to the THAAD system. Primary work locations include Sunnyvale, California, and Dallas, Texas, with multiple other locations involved.
An initial task order of USD 12.7 million has been issued, with USD 200,000 allocated for the fiscal year 2025. THAAD is designed to intercept short-, medium-, and intermediate-range ballistic missiles in their final, or re-entry, phase using hit-to-kill technology, with an operational range of approximately 200 kilometres (120 miles).
The new contract supports the continued development of THAAD System Build 6.0, a significant upgrade to the existing system. According to the MDA’s fiscal year 2025 budget, this version enhances THAAD’s capability against manoeuvring air targets and expands the threat engagement area.
