On September 27, 2024, Lockheed Martin landed a significant $3.2 billion contract with the US Air Force for the mass production of AGM-158C Long Range Anti-Ship Missiles (LRASM) and AGM-158B Joint Air-to-Surface Standoff Missiles (JASSM). The deal, extending through July 2032, also includes sales to key US allies such as Japan, the Netherlands, Finland, and Poland, signaling an aggressive expansion of global munitions production under the Pentagon’s new multiyear procurement initiative.
The initiative, historically reserved for larger assets like ships and aircraft, has now been extended to critical munitions as the US looks to increase its industrial capacity. This strategy aims to bolster deterrence against China and strengthen the defense supply chain, particularly as US defense demands soar amid ongoing support for Ukraine’s war efforts against Russia.
The contract is part of a larger program known as the “large lot procurement pilot program,” intended to speed up missile production and expand Lockheed Martin’s annual output of JASSM and LRASM missiles. Lockheed Martin emphasized that this multiyear procurement will enhance the resilience of the US defense industry and enable rapid production scaling in times of increased demand.
Manufacturing for the missiles will take place at Lockheed Martin’s facilities in Orlando, Florida. Of the $3.2 billion contract, the US Air Force will invest $1.5 billion for missile production, and an additional $2 million for operations and maintenance, while the US Navy will contribute $176 million. Furthermore, the Pentagon will dedicate $752 million toward foreign military sales to allies like Japan and Poland.
JASSM missiles are precision cruise missiles designed to allow aircraft to strike ground targets from a safe distance, out of reach of enemy air defenses. The LRASM variant, derived from the JASSM platform, focuses on anti-ship capabilities, enabling US forces to destroy naval targets from long-range positions, increasing battlefield flexibility in maritime conflicts.
On the same day, the US State Department cleared the potential sale of 100 Advanced Anti-Radiation Guided Missiles-Extended Range (AARGM-ER) to Australia, valued at $405 million. Manufactured by Northrop Grumman, the AARGM-ER missiles will improve Australia’s capacity to detect and neutralize enemy radar systems, strengthening its air defense posture in the Pacific theater. This sale underlines the growing importance of US-Australian defense cooperation as geopolitical tensions in the Indo-Pacific continue to rise.
In summary, the multiyear missile contract awarded to Lockheed Martin reflects the Pentagon’s broader strategy to optimize munitions production and safeguard the resilience of the US defense industrial base. With rising threats and an increasingly complex global security environment, this contract ensures the US military and its allies remain well-equipped. Meanwhile, the sale of AARGM-ER missiles to Australia fortifies the defense partnership in the Pacific, further strengthening US-led security efforts in the region.
Photo from Lockheed Martin
