Framework and Funding Accelerate Precision Strike Missile Manufacturing for U.S. Army

Lockheed Martin and the U.S. Department of War have established a new framework agreement to rapidly increase the production capacity of the Precision Strike Missile (PrSM). This strategic move is focused on supporting critical U.S. Army operational requirements and is designed to complement existing contractual efforts.

Expanding the Production Horizon

• Scaling Operations: When combined with a $4.94 billion contract finalized last year, these joint actions are forecasted to increase the manufacturing output of the missile system by 400 percent.
• Future Commitment: The agreement establishes the foundation for a potential multi-year procurement contract that could span up to seven years. This long-term commitment is contingent upon future authorization from the U.S. Congress.
• Modernizing Capabilities: The PrSM is designed as the successor to the aging Army Tactical Missile System (ATACMS). The new system offers significantly extended range, increased lethality, and greater flexibility across various launch platforms.
• Combat-Proven Debut: The missile achieved its operational debut on March 4. U.S. Central Command confirmed that the PrSM was utilized in combat for the first time during Operation Epic Fury, demonstrating its deep-strike capabilities.

Investment in Industrial Readiness

Lockheed Martin’s President and CEO, Jim Taiclet, emphasized that the company is collaborating closely with the Department of War and the U.S. Army. The primary objective is to scale manufacturing quickly enough to meet urgent operational demand, ensuring the joint force is equipped to deter emerging threats.

Since the first term of President Donald Trump, Lockheed Martin has invested over $7 billion to expand its production capacity for several critical systems. Approximately $2 billion of that capital was focused specifically on increasing munitions output. The PrSM program already utilizes more than 115,000 square feet of dedicated production space in the United States and is supported by a workforce of over 400 employees. To meet the forecasted demand, the company continues to expand its workforce, creating thousands of new jobs across manufacturing, engineering, and skilled trades.