Jan 6 (Reuters) - Lockheed Martin said on Tuesday that it has reached a seven-year agreement with the U.S. Department of War to increase the annual production capacity for its PAC-3 missile interceptors to 2,000 units a year from about 600 previously.
Demand for the PAC-3, or Patriot Advanced Capability missile interceptors, has grown as the U.S. and allied countries step up air defense capabilities in response to heightened geopolitical tensions.
Alongside the U.S., Lockheed Martin supplies PAC-3 to sixteen other countries, including Sweden, Qatar, Japan and Poland.
The Patriot system is also among the weapons the West has supplied to Ukraine as it fights Russia's invasion.
In 2025, Lockheed Martin delivered 620 units of the Patriot missile. Over the last two years, it has increased production by 60%.
Lockheed Martin will work with the U.S. government towards an initial contract award, which is expected in final fiscal year 2026 Congressional appropriations.
In September 2025, the Bethseda, Maryland-based company was awarded a $9.8 billion contract for 1970 Patriot missiles, the largest order to ever be placed for the weapon.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Shailesh Kuber)
