Lockheed Martin Texas plant expansion is underway with a $300 million investment to enlarge the company’s Grand Prairie facility, which supports programs across its Missiles and Fire Control portfolio, including PAC-3 MSE and THAAD interceptors, the Precision Strike Missile, and the AIM-260 Joint Advanced Tactical Missile.
The company said on Oct. 14 that the project will enable record output and accelerate delivery of components to final assembly sites in Camden, Arkansas, and Troy, Alabama.
The build adds 100,000 square feet of new space and converts 85,000 square feet of office area into factory floor for automated, high-precision machining, bringing the manufacturing footprint to more than 735,000 square feet.
Nearly 800 production employees work at Grand Prairie, which turned out 250,000 parts in 2025. The company has installed more than 30 high-precision machines in recent months and expects to add nearly 100 more by the end of 2026.
Lockheed also said Hadrian, a California manufacturing startup, will install 24 automated machines at the site to produce missile components. Lockheed employees will operate the equipment, which is expected to be operational by early 2027. The move follows a memorandum of understanding the companies signed in December 2025.
“The warfighter can’t wait on peacetime timelines,” Hadrian CEO Chris Power said. “Rebuilding the Arsenal of Freedom at the scale America needs will take partnerships that combine expertise and speed.”
Lockheed Martin Texas plant upgrades tied to Pentagon deals
The expansion supports a series of Defense Department framework agreements with Lockheed since January aimed at surging missile production and paving the way for long-term contracts. The first seeks to raise PAC-3 MSE output from about 600 to roughly 2,000 interceptors per year over seven years.
The U.S. Army followed with a $4.7 billion award in April, which was converted in July into a seven-year production contract valued at about $58.6 billion in total.
A separate THAAD framework signed in January led to a June contract from the Missile Defense Agency worth more than $35 billion to quadruple interceptor production. Similar agreements were announced for the Precision Strike Missile on March 25 and for the AIM-260 on Sept. 17.
“Lockheed Martin has brought together commercial speed and combat-proven performance because America needs both,” said Jim Taiclet, Lockheed’s chairman, president and CEO. “By combining advanced technology with the expertise of our American workforce, we’re transforming manufacturing to deliver critical munitions at speed and scale.”
“This expansion is more than just a new facility. It is a stronger supply chain and a more resilient industrial base,” said Michael Duffey, the Pentagon’s undersecretary for acquisition and sustainment.
The Grand Prairie project is part of Lockheed’s plan to invest $8 billion to $9 billion through 2030 to increase munitions output and modernize or expand more than 20 U.S. facilities. The company said it intends to create 6,000 jobs nationwide, including 2,000 in Texas.
Lockheed’s push to boost missile manufacturing capacity comes as other Western militaries pursue new interceptor capabilities, such as the Royal Navy Type 45 destroyer spotted with new drone interceptors.
The broader buildup also aligns with priorities outlined by the U.S. Department of Defense to strengthen the munitions industrial base and replenish stockpiles.