The Missile Defense Agency in December awarded Lockheed Martin [LMT] a $528 million contract for the production of interceptors for the Terminal High Altitude Area Defense (THAAD) system, the company said Monday.

A Terminal High Altitude Area Defense (THAAD) battery deploys a missile. Photo: Lockheed Martin.
A Terminal High Altitude Area Defense (THAAD) battery deploys a missile. Photo: Lockheed Martin.

The THAAD system provides MDA a transportable way to defend against short- to medium- range ballistic missile threats. It consists of four parts: a truck-mounted launcher, interceptors, the AN/TPY-2 x-band radar used to find and track missiles, and a fire control system used for command and control and mission planning.

During an engagement, a THAAD interceptor destroys the incoming missile through a “hit to kill” that uses the kinetic energy of the interceptor colliding into the missile.

“With advanced range, agility and accuracy, our interceptors are fully capable of defeating dangerous missile threats today and into the future,” said Richard McDaniel, Lockheed Martin’s vice president for the THAAD system. “Our focus on affordability, coupled with efficiencies of increased volume, is providing significant cost-savings opportunities to meet growing demand from the U.S. and allies around the globe.”

This past year has been a landmark one for the program. The Army activated the fifth of seven planned THAAD batteries, and Lockheed Martin delivered its 100th interceptor.

So far the United Arab Emirates is the only international user of the system, although Japan and South Korea have shown interest in THAAD.