Accelerating Together: A New Era of Supply-Chain Partnerships
When global conflicts occur, the speed at which industry delivers can be the decisive factor in battlefield success. Lockheed Martin is moving with wartime urgency to deliver the Arsenal of Freedom for our warfighters, and we are backing that commitment with an $8-9 billion investment to scale munitions production. That investment extends across the entire production enterprise, from supply chain enhancements and expanded manufacturing capacity to new facilities, advanced technologies and thousands of jobs at more than 20 sites across America.
This year, Lockheed Martin has partnered with the Department of War to leverage commercial-style agreements to increase production of PAC-3® Missile Segment Enhancement (MSE), THAAD, PrSM and JATM over several years. These agreements provide the long-term demand signal Lockheed Martin and its suppliers need to invest ahead, expand capacity and accelerate production.
Long story short: The result is greater speed and scale across the entire manufacturing ecosystem — from raw materials and critical components to final assembly — so every link in the supply chain can keep pace with growing demand.
“We are moving with wartime urgency to deliver the Arsenal of Freedom,” said Tim Cahill, president of Lockheed Martin Missiles and Fire Control. “The pressure on our American forces is real, and we are sparing no effort in terms of the dollars we’re investing, the people we’re hiring, the facilities we’re building, and the speed and collaboration we are demanding from our suppliers.”
Strategic Partnerships
Beyond Lockheed Martin’s newly cemented partnerships with the Department of War, L3Harris, Boeing, BAE Systems, Northrop Grumman, General Dynamics, and other key partners have also signed framework agreements that lock in munitions production rates, reduce lead times and embed commercial efficiency into defense processes. Monthly strategic, collaborative discussions with these suppliers and many others keep the focus sharply on delivering munitions at speed and scale.
And that collaboration is already producing results:
Our collaboration with thermal battery supplier EnerSys has produced a more than 130% increase in production capacity over the next six months, while also cutting the cost of scaling by 21%.
Updated materials and new processes have reduced cure times dramatically; the sealant used on missile canisters now cures twelve hours faster, a change that has already shortened manufacturing cycles and boosted unit‑assembly rates.
Working together with our supplier base, we have also addressed a historic bottleneck on the production line, creating process improvements that will enable substantially higher delivery numbers in the future.
Lockheed Martin is partnering outside of the traditional defense industry, developing commercial partnerships that significantly reduce lead times.
One example: GM Defense delivered its first mission-critical components for PAC-3 MSE less than one month after signing a formal contract with Lockheed Martin — demonstrating how commercial manufacturing practices can help dramatically compress traditional defense production timelines.
Accelerating With Urgency
Lockheed Martin understands that accelerating final assembly is only possible if the entire supply chain accelerates with it.
That is why the company is investing not only in its own facilities and workforce, but also in the suppliers, partnerships, processes and technologies that make increased production possible. From long-standing defense suppliers to new commercial partners, each is an essential part of the mission.
The goal is bigger than increasing production at any one facility or on any one program. It is about strengthening the industrial base and building a supply chain capable of responding at the speed today's security environment demands.
Because delivering the Arsenal of Freedom at speed and scale is not something any one company can do alone. It takes government, industry and suppliers working as one team — investing earlier, moving faster and building the capacity America and its allies need for today and for the future.