The Department of War announced on March 25, 2026 a series of agreements with BAE Systems, Honeywell Aerospace, and Lockheed Martin to expand US missile and munitions production. The agreements aim to increase output across key systems, strengthen the defense industrial base, and support military readiness through faster and larger-scale production.
The agreements were announced as part of a broader effort to increase production capacity across the US defense supply chain. According to the Department of War, the initiative focuses on expanding output at multiple levels, including component manufacturing and final system assembly, to improve readiness and responsiveness.
Department of War announces major production agreements
The Department of War confirmed coordinated agreements with BAE Systems, Honeywell Aerospace, and Lockheed Martin to expand missile and munitions production. The announcement outlined a multi-part strategy to increase output across critical defense systems while strengthening supply chain resilience.
According to the Department of War, these agreements follow earlier actions to increase interceptor production and are intended to support long-term industrial capacity. The combined effort reflects a shift toward direct engagement with suppliers across the defense manufacturing ecosystem.
Overview of agreements and industrial partners
The Department of War identified three primary agreements covering missile defense components, munitions technologies, and precision strike systems. Each agreement targets a different part of the supply chain, from component manufacturing to system-level production.
Additionally, the Department of War stated that the agreements involve BAE Systems for THAAD seekers, Honeywell Aerospace for munitions components, and Lockheed Martin for Precision Strike Missile production. This distribution aims to expand capacity across multiple production tiers while maintaining coordination across industry partners.
Expansion of THAAD missile seeker production
The Department of War announced an agreement with BAE Systems to quadruple production of seekers used in the Terminal High Altitude Area Defense (THAAD) interceptor. The Department of War stated that this expansion supports earlier plans to increase interceptor output.
Meanwhile, securing seeker production is intended to stabilise a key component in the missile defense supply chain. By increasing output at this level, the Department of War aims to ensure that interceptor production can scale without bottlenecks.
Table: THAAD production expansion details
| Indicator | Recent Movement | Context |
|---|---|---|
| Seeker production | Quadrupled output | Department of War agreement with BAE Systems to support THAAD interceptor expansion |
| Interceptor production | Previously increased | Department of War earlier announcement to scale THAAD interceptor manufacturing |
| Supply chain stability | Long-term demand signal | Department of War states agreement provides certainty for supplier investment |
Honeywell agreement to scale munitions components
The Department of War confirmed an agreement with Honeywell Aerospace to expand production of navigation systems, actuators, and electronic warfare components. The Department of War stated that the agreement includes a $500 million multi-year investment by Honeywell Aerospace.
Additionally, increased production of these components is expected to support a range of munitions systems. The Department of War noted that expanding component-level manufacturing helps improve delivery speed and system availability across the military supply chain.
Munitions component expansion
| Indicator | Recent Movement | Context |
|---|---|---|
| Investment level | $500 million | Honeywell Aerospace commitment under Department of War agreement |
| Navigation systems | Production increase | Department of War identifies systems used in precision munitions guidance |
| Actuators and EW | Expanded output | Department of War highlights role in missile maneuverability and battlefield systems |
Lockheed Martin partnership to accelerate PrSM delivery
The Department of War announced a framework agreement with Lockheed Martin to accelerate production of the Precision Strike Missile (PrSM). The Department of War stated that investments in tooling and facility upgrades are expected to reduce production lead times.
However, the agreement also establishes the potential for a multi-year contract of up to seven years, subject to congressional authorization. This structure is intended to support sustained production increases over time.
Production acceleration and industrial strategy
The Department of War explained that reducing lead times will allow faster delivery of precision strike capabilities to military forces. Additionally, investments in manufacturing infrastructure are expected to improve efficiency and output levels.
According to the Department of War, the agreements form part of its Acquisition Transformation Strategy and the work of the Munitions Acceleration Council. This approach focuses on increasing production speed, scale, and coordination across the defense industrial base.
Strategic impact on US defense industrial base
The Department of War stated that the agreements are designed to strengthen the defense industrial base by providing long-term demand signals to industry partners. This approach is intended to encourage private investment and expand manufacturing capacity.
Meanwhile, the Department of War indicated that increasing production across multiple supply chain levels supports military readiness and deterrence. The coordinated strategy aims to ensure that critical systems can be delivered at the required scale.
Stakeholder Comments
- Michael Duffey, Under Secretary of War for Acquisition and Sustainment: stated that long-term agreements provide industry certainty and enable investment in production capacity, according to the Department of War.
- Department of War: noted that the agreements support a broader strategy to increase speed and scale of defense manufacturing across the supply chain.
Parting Shot
The Department of War’s agreements with BAE Systems, Honeywell Aerospace, and Lockheed Martin represent a coordinated effort to expand missile and munitions production capacity.
By increasing output across multiple components and systems, the initiative aims to strengthen supply chains and improve delivery timelines. The approach reflects a broader strategy to enhance industrial capacity and support ongoing military requirements.
Sources: Department of War, BAE Systems, and Lockheed Martin.
Prepared by Ivan Alexander Golden, Founder of THX News, an independent news organization delivering timely insights from global official sources.
Research combines AI-assisted analysis with human-edited accuracy and context.
