Largest Patriot Missile Deal in History: $9.8 Billion Contract Signed with Lockheed Martin

The US Army has signed a record-breaking $9.8 billion contract with Lockheed Martin to produce 1,970 PAC-3 MSE interceptors, marking the largest Patriot missile deal in history.

A Historic Missile Defense Contract

The agreement with Lockheed Martin represents the single largest order ever placed with the company’s Missiles and Fire Control division. The deal dwarfs past contracts, which typically ranged between $1 and $3 billion for several hundred interceptors at a time.

Comparison with Previous Orders

In 2018, Lockheed Martin secured a $1.1 billion contract to deliver fewer than 200 missiles, while a 2021 deal worth $3.3 billion covered production of approximately 1,500 interceptors over multiple years. The new $9.8 billion order underscores Washington’s urgency to boost production capacity.

Deployment and Strategic Role

The PAC-3 MSE (Missile Segment Enhancement) interceptor is a core component of the Patriot air and missile defense system, deployed by US Army air defense brigades stationed in Germany, South Korea, Japan, and the Middle East. These units form part of the 32nd Army Air and Missile Defense Command, including the 11th Brigade in Fort Bliss and the 35th Brigade in Korea.

Patriot batteries are central to the integrated missile defense architecture of the US and its allies, tasked with protecting bases, urban centers, and critical infrastructure.

Rising Demand and Expanded Production

The enormous procurement reflects growing consumption of PAC-3 MSE interceptors in active combat zones such as Ukraine and the Middle East. Lockheed Martin has already expanded its production lines and expects to deliver more than 600 missiles in 2025 alone, a milestone made possible by early investments in infrastructure and workforce growth.

Combat-Proven in the Middle East

The expansion comes in the wake of intense operational use. In June 2025, Iran launched a missile barrage on Al Udeid Air Base in Qatar, the US Central Command’s key hub in the region. Patriot batteries operated jointly by American and Qatari forces intercepted nearly all incoming projectiles, preventing mass casualties and major damage. Only one fixed radar installation was hit.

This engagement has been described as the most extensive combat use of the Patriot system in US history, with around 30 interceptors defeating 14 missiles.

The event underscored the system’s critical role in modern warfare and reinforced the Pentagon’s decision to drastically expand interceptor production.