Lockheed Martin won an additional $2.5 billion contract for the production of Terminal High Altitude Area Defense (THAAD) interceptors for Saudi Arabia as part of a $15 billion deal for the defensive ballistic missile systems.
Lockheed is to provide interceptors and associated one-shot devices to support the US government as well as the Kingdom of Saudi Arabia.
The THAAD system is an anti-ballistic missile defense system designed to shoot down short-medium, and intermediate-range ballistic missiles in their terminal phase with a hit-to-kill approach. The THAAD Weapon System is able to intercept incoming missiles both inside and just outside of the Earth’s atmosphere at a range of 200 kilometers, which mitigates the effects of weapons of mass destruction before they reach the ground. The ability to intercept both inside and outside the atmosphere makes THAAD an important part of layered missile defense concepts.
Lockheed will provide 44 THAAD launchers, 360 missile interceptors, 16 THAAD Fire Control, and Communications Mobile Tactical Station Group units and seven AN/TPY-2 THAAD radars for Saudi Arabia.
In November, the United States and Saudi Arabia formalized terms for the sale of the THAAD launchers, missiles, and related equipment. Work will take place in Texas, California, Alabama, Arkansas, and is expected to be completed on April 1, 2026.