US strikes $58.6 billion Patriot missile deal amid rising stockpile concerns

The US Department of Defense signed a $58.6 billion contract with Lockheed Martin to purchase Patriot interceptors, aiming to boost production from 600 to 2,000 per year by 2032. The deal covers over 10,000 interceptors and addresses stockpile depletion from wars involving Iran and Ukraine, as well as preparations for a potential conflict with China.

The US Department of Defense has signed one of its largest procurement contracts, a $58.6 billion deal with Lockheed Martin for Patriot interceptors. The contract covers over 10,000 interceptors and aims to increase production from 600 to 2,000 per year by 2032, requiring Lockheed Martin and its suppliers to expand production lines. The company plans to invest up to $9 billion in facilities in Alabama and Arkansas and hire over 1,000 employees. The stockpile has been depleted by wars involving Iran and Ukraine, as well as preparations for a possible conflict with China. The US has delayed interceptor deliveries to Ukraine and postponed deliveries to Switzerland until 2032 to prioritize US forces and Gulf states. The Pentagon also ordered older PAC-2 interceptors from Raytheon for $441 million to ease the shortage. The deal is expected to reduce unit costs slightly, to at least $4 million each, compared to Israel's David's Sling interceptor at about $1 million per unit.