Key facts
- Boeing will triple production of PAC-3 MSE seekers under a contract worth up to $14.7 billion.
- The PAC-3 MSE is an interceptor used in the Patriot air defense system.
- Lockheed Martin aims to increase PAC-3 missile interceptor production to 2,000 units annually from 600.
- The US Army awarded Lockheed Martin a contract worth up to $58.6 billion in July to boost PAC-3 missile production.
Boeing announced on Monday that it had received a seven-year contract from Lockheed Martin valued at approximately $14.7 billion. The agreement is for Boeing to scale up production and deliver PAC-3 Missile Segment Enhancement (MSE) seekers, which are the guidance components for the Patriot air defense system's interceptor missiles.
The contract will enable Boeing to triple its production of these critical missile seekers. This move aligns with Lockheed Martin's broader strategy, announced in January, to significantly increase the annual production capacity for its PAC-3 missile interceptors to 2,000 units from about 600 previously, through a framework agreement with the US Department of War.
These production agreements are part of an initiative by the Trump administration to accelerate weapons manufacturing. Demand for the PAC-3 interceptor has risen due to ongoing conflicts in Iran and Ukraine, which have strained US weapons stockpiles. In July, the US Army awarded Lockheed Martin a contract worth up to $58.6 billion to further boost PAC-3 missile production.
However, industry executives have cautioned that Congress has not yet fully appropriated funding for these deals, which could delay contractors' investments in components and facilities until legislative action is taken.