Lockheed Martin, Pentagon Reach Initial Deal for 850 F-35 Fighter Jets

WASHINGTON: Lockheed Martin has secured an initial production and sustainment agreement with the United States Department of Defense to manufacture at least 850 F-35 Lightning II fighter jets over the next decade, the company announced on Thursday.

The defense contractor will invest a minimum of $7 billion in initiatives supporting the F-35 program, as stated by the Department of Defense. The F-35, renowned for its stealth capabilities that enable it to evade enemy detection, is regarded as the world’s most advanced fighter jet and constitutes nearly 40 percent of Lockheed’s quarterly revenue.

This agreement, while not a formal order, is recognized as a prearranged long-term contract. Under the terms, Lockheed aims to sustain an annual production rate of 156 aircraft, a target that aligns with the strategic objectives outlined by the Department of Defense, which U.S. President Donald Trump has referred to as the ‘Department of War.’

Looking ahead, if multi-year authority is granted in the coming months, the F-35 Joint Program Office and Lockheed Martin will collaborate to finalize contract terms, pricing, and schedules through a formal contract, paving the way for enhanced military capabilities.