Lockheed to develop an intercontinental missile interceptor for the US Army

Lockheed Martin has won a contract from the US Missile Defence Agency to develop the next generation of intercontinental ballistic missile interceptors.

Here's What We Know

The contract is valued at approximately $17 billion. It is aimed at improving the effectiveness of the missile defence system and ensuring the country's security against potential threats from countries such as North Korea and Iran.

Lockheed will develop a new generation anti-aircraft missile to improve the existing GMD missile defence system. The contract also includes the creation of a network of radars and other necessary equipment. The first interceptor is expected to enter service in 2028.

The company emphasised its ability to supply reliable and effective interceptors for the army's needs. The company's shares rose by 0.60% after the announcement of the successful contract.

Interestingly, government estimates suggest that the new interceptor development programme will cost around $17.7 billion. And in the budget for the next fiscal year, the Biden administration proposed to allocate $28.4 billion for missile defence systems.

Work on the ground defence programme began in the late 1990s. Since then, $40 billion has been spent. Although more than half of all system tests have been successful, the Pentagon's Office of the Director of Operational Test and Evaluation reported in 2023 that GMD can defend against "a small number of ballistic missile threats".

Source: Reuters