L3Harris Secured $6 Billion Lockheed Martin Contract

The seven-year agreement focuses on expanding propulsion production for missile defense systems.

Updated on Sept. 29, 2026 in Manufacturing

Bold flat-color editorial illustration showing a stylized rocket motor component, conveying the precision of large-scale aerospace manufacturing. — L3Harris Technologies has been awarded a $6 billion contract by Lockheed Martin to significantly increase rocket boost motor production for the THAAD missile defense system. AI Illustration. Upload story photo >

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L3Harris Technologies has received a $6 billion contract from Lockheed Martin to produce rocket boost motors. The deal aims to scale production for the Terminal High Altitude Area Defense (THAAD) system.

Why it matters

The contract is part of a broader strategic effort to increase output for critical missile defense infrastructure. It follows a federal framework agreement intended to quadruple propulsion production for the THAAD system.

The seven-year contract is valued at over $6 billion. This project serves to scale production for liquid divert and attitude control systems.

The players

L3Harris Technologies

L3Harris Technologies is a major aerospace and defense contractor that provides mission-critical solutions for government and commercial customers.

Lockheed Martin

Lockheed Martin is a global aerospace and security company engaged in the research, design, and manufacture of advanced technology systems.

Defense Department

The Defense Department is the United States federal executive department responsible for coordinating and supervising all agencies and functions of the government relating directly to national security.

The details

L3Harris will construct a new facility dedicated to rocket boost motor manufacturing as part of the deal. The company is also tasked with increasing the capacity for components essential to the THAAD ballistic missile interception system.

Earlier this year, L3Harris signed a framework agreement with the Defense Department.
L3Harris received the $6 billion contract on September 29, 2026.

Market Landscape

This deal accelerates a trend of major defense consolidation to bolster domestic manufacturing capacity. It positions L3Harris as a primary supplier for high-demand ballistic missile defense hardware in a competitive aerospace market.

This contract is a business-to-business transaction and does not immediately change individual retail pricing. It signifies a long-term shift in industrial output capacity for the defense sector.

The takeaway

This agreement underscores a massive investment in scaling up specialized rocket motor production over the next seven years. The expansion highlights the critical priority placed on maintaining and modernizing ballistic missile defense capabilities.