The Pentagon has reached an agreement with BAE Systems and Lockheed Martin to quadruple production of infrared seekers for the Terminal High Altitude Area Defense interceptor, officials announced Wednesday.

The seeker deal aligns with a contract agreement in January between the Pentagon and Lockheed to quadruple the company’s annual production of THAAD interceptors from 96 to 400.

This multiyear arrangement signals strong sustained demand for advanced defense capabilities.

“This new multiyear agreement provides a long-term demand signal that gives us the confidence to further invest in expanding our capacity,” Tom Arseneault, president and CEO of BAE Systems, said in a release Wednesday.

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“We remain focused on rapidly delivering superior technology at scale to help our warfighters maintain a decisive advantage.”

The two quotes illustrate the emphasis placed on capacity, speed and reliability in the THAAD program.

BAE’s THAAD seeker uses advanced sensors to find and lock onto incoming threats, including ballistic missiles traveling up to 17,000 miles per hour, according to company specifications.

Once locked on, the THAAD interceptor can take out threats both inside and beyond the atmosphere using a non-explosive, hit-to-kill impact.

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The technical details underscore the system’s intended capability to counter fast, maneuvering targets at high altitudes, a core element of the layered air defense architecture.

Like Lockheed’s deal, the contract for BAE’s infrared seekers is set for seven years.

Lockheed also announced a separate seven-year deal in January to increase annual production of its PAC-3 interceptors from 600 to 2,000 across the next seven years.

The parallel time horizons reflect a synchronized approach to expanding limited defensive assets in key doctrine areas.

The deals come as the U.S. military’s reliance on costly interceptors against cheap munitions, particularly those used by Iran during Operation Epic Fury, has come under increased scrutiny.

Iran has no shortage of unmanned Shahed drones — reportedly producing 10,000 per month, according to Reuters.

Contrast the $35,000 average cost of an Iranian Shahed drone with an estimated $4 million price tag of a PAC-3, and the cost exchange is 114-1 in favor of Iran.

These cost dynamics highlight why the Pentagon seeks scalable production for high-end interceptors, even as adversaries pursue low-cost options.

But with deals in place to quadruple THAAD production, it’s clear the Pentagon views the systems as vital pieces in the defense architecture.

“Securing our supply chain is just as critical as our partnership with the prime contractors,” Michael Duffey, under secretary of defense for Acquisition and Sustainment, said Wednesday.

“This agreement with BAE Systems sends a clear, stable, long-term demand signal. We are providing the certainty our partners need to invest, expand and hire. This is how we place the industrial base on a wartime footing.”

This sequence of quotes emphasizes the administration’s focus on reliability and resilience across the production chain.

BAE Systems’ work on the THAAD seeker will be completed at the company’s facilities in Nashua, New Hampshire, and Endicott, New York.

The contracts reflect a concerted effort to scale up manufacturing capabilities and ensure continued access to advanced sensor technology for the THAAD system.

The combined production increases for THAAD seekers and PAC-3 interceptors illustrate a broad strategy to strengthen the United States’ layered missile defense.

Officials say the planned cadence provides predictable demand for key suppliers, enabling investments in facilities, equipment and workforce.

In addition to the industrial implications, defense planners emphasize that maintaining available interceptor inventories supports both deterrence and readiness.

Analysts note that the agreements signal a long-term commitment to sustain high-tech defense manufacturing capacity in the United States.

The result is a defense posture designed to adapt to evolving threats while ensuring that the supply chain remains robust in the face of potential challenges.

The broader policy context includes ongoing evaluation of how best to balance cost, speed and protection.

The current packages are intended to preserve access to critical capabilities while maintaining fiscal discipline across large-scale procurement programs.

Observers say the production increases reflect a deliberate effort to keep pace with developments in both offense and defense technologies.

For now, the focus remains on delivering reliable, scalable defense systems that can be deployed with confidence when the nation’s security is at stake.

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