Missile defence: Lockheed Martin plans to Enter European market with combat-proven THAAD system

By Defence Industry Europe

The United States Missile Defense Agency (MDA) has awarded Lockheed Martin a contract worth up to USD 2.81 billion for the continued development of the Terminal High Altitude Area Defense (THAAD) system. The agreement, which spans from 1 February 2025 to 31 January 2035, will focus on upgrading hardware and software, as well as initial fielding of new capabilities.
Image: Missile Defense Agency (MDA).

Lockheed Martin is actively marketing its Thaad missile defence system to European countries, as military spending across the continent increases in response to perceived Russian threats. The company confirmed its plans in an interview with German newspaper Handelsblatt, highlighting ongoing negotiations with potential buyers.

 

Michael Williamson, president of Lockheed Martin International, said the system costs more than 1 billion euros ($1.17 billion) and could be integrated into the European Skyshield Initiative. This German-led air-defence project is currently centred on Israel’s Arrow 3 system, but Thaad is being considered as an alternative, according to Handelsblatt.

 

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Russia’s invasion of Ukraine in 2022 has led to a sharp rise in defence budgets, with countries like Germany committing to major investments. Reports of suspected Russian drones entering NATO airspace, including over Denmark and Poland, have intensified efforts to improve both missile and drone defences.

This security climate has drawn attention from major U.S. defence contractors, with both Northrop Grumman and Lockheed Martin expanding their activities in Europe. Williamson told Handelsblatt that he sees “the greatest growth prospects in markets outside the U.S., such as Europe, over the next five years.”

 

 

Lockheed Martin’s partnership with Germany’s Rheinmetall is viewed as essential for increasing its competitiveness in the region. Williamson stated the cooperation “creates jobs and opens doors to political decision-makers,” according to Handelsblatt.

Despite the growing interest, some European governments remain cautious about relying too heavily on U.S. systems. Denmark recently chose the European-made SAMP/T over the U.S. Patriot missile system, highlighting ongoing concerns over defence autonomy.

 

Source: Reuters.

 

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