Lockheed Martin and the US Department of War (DoW) have announced a framework agreement to accelerate the production of Precision Strike Missiles (PrSM).
"Lockheed Martin delivers the advanced precision fires capabilities the warfighter needs, including the Precision Strike Missile (PrSM), which expands deep-strike capability," Lockheed Martin Chairman, President and CEO, Jim Taiclet, stated. "We are working closely with the Department of War and the U.S. Army to scale production to meet operational demand and ensure the joint force has the capabilities needed to deter and defeat emerging threats."
The agreement builds on a previous US $4.94 billion (approx. A $7.1 billion) contract award from the US Army last year and together, these actions will quadruple PrSM production capacity.
This initiative will directly support the US national imperative to build a more lethal, resilient and ready fighting force, backed by a stronger, advanced industrial base.
The agreement has included the ability to negotiate a multi-year contract up to seven years, should Congress grant multi-year authority, contingent upon future congressional authorisation.
On March 4, US Central Command confirmed that long-range PrSM was used in combat for the first time during Operation Epic Fury, marking the system's operational debut.
PrSM was designed to succeed the legacy Army Tactical Missile System (ATACMS). The system is enabled by mission integration and digital engineering across industry and government.
In July 2025, the Army granted Milestone C approval for PrSM, signaling readiness for full production and deployment.
According to the company, Lockheed Martin was the first in the industry to announce a framework agreement for munitions acceleration under the DoW's Acquisition Transformation Strategy, tripling production capacity of the combat-proven PAC-3 Missile Segment Enhancement (MSE) interceptor and a second agreement to quadruple the production capacity of Terminal High Altitude Area Defense (THAAD) interceptors.
In 2025, the Australian Government signed a memorandum of understanding (MoU) with the US for production, sustainment, and follow-on co-development of the PrSM, including Increment 2.
This agreement will accelerate Australia’s long-range, land-based strike capabilities, providing the Australian Defence Force (ADF) with access to PrSM munitions, and establishes PrSM as a cooperative program between Australia and the United States.
In addition, the new cooperative program is expected to open the door for Australian industry participation in the PrSM supply chain, including for locally manufactured components and sub-components.
The government is contributing $310 million over 10 years to become a full cooperative partner in the PrSM program, with more than $150 million being invested over the next five years to acquire the initial quantities of the capability required for the Australian Army’s Long Range Fires Regiment.
Lockheed Martin is one of two preferred options to satisfy requirements outlined under Land 8113-Phase 2 – Second Long-Range Fires Regiment (2LR).
A decision related to an additional long-range fires regiment, focused on Land Based Maritime Strike (LBMS) is expected in the coming months.
Lockheed Martin is proposing an additional tranche of HIMARS launchers with PrSM Increment 2 to provide an unmatched anti-access/area denial capability for the ADF.