US defense industry giant Lockheed Martin has been awarded a $932.8 million contract for the delivery of Terminal High Altitude Area Defense (THAAD) interceptors and associated equipment to the US and Saudi Arabia.
The US Missile Defense Agency uses THAAD as an integrated, layered, ballistic missile defense system. Its high-altitude intercept capability mitigates the effects of enemy weapons before they reach the ground, while its non-explosive kinetic impact minimizes the risk of detonation.
The March 24 contract is the latest in a series of modifications awarded to the company since Saudi Arabia’s $15 billion THAAD purchase was approved by the US in October 2017. According to the US Defense Security Cooperation Agency, Saudi Arabia is expected to procure a total of 360 interceptor missiles, in addition to fire control and communications mobile tactical stations and Raytheon radars.
In 2018, the US and Saudi Arabia signed a formal letter of offer and acceptance for 44 THAAD launchers.
Lockheed Martin is expected to complete work under the latest contract by 2026.