Lockheed Martin Secures $17 Billion US Missile Defense Contract

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Lockheed Martin has been awarded a $17 billion contract by the U.S. Missile Defense Agency to develop the next generation of interceptors for defending the United States against potential intercontinental ballistic missile threats, announced on Monday.

The interceptor program aims to counter current ballistic missile threats and future technological advancements from nations such as North Korea and Iran. This contract win comes as a significant boost for Lockheed following recent developments such as the U.S. government’s intention to reduce F-35 orders and the Army’s decision to abandon the development of a Future Attack Reconnaissance Aircraft, a project in which Lockheed had participated.

The multi-year missile defense contract focuses on developing the Next Generation Interceptor (NGI) to modernize the Ground-Based Midcourse Defense (GMD) program. This program, comprising a network of radars, interceptors, and other equipment, is designed to safeguard the United States from intercontinental ballistic missiles.

Lieutenant General Heath Collins, head of the Missile Defense Agency, disclosed that Lockheed and Northrop Grumman (NOC.N) were the contenders for the program. Both companies were awarded separate contracts in 2021 to develop designs.

In 2019, the Pentagon terminated a contract with Boeing Co (BA.N) for a “kill vehicle” due to technical design issues after investing $1.2 billion. Consequently, the United States restarted the contract process to solicit bids for the entire interceptor system, ultimately excluding Boeing from the competition in 2021.