Lockheed Martin [EPA=Yonhap News]

Lockheed Martin, the largest defense contractor in the United States, has signed a contract with the U.S. Department of Defense worth up to $35 billion (approximately 54 trillion won) to significantly expand the production of THAAD interceptor missiles.

According to Bloomberg News on the 25th (local time), Lockheed Martin has received a contract from the U.S. Department of Defense, valued at up to $35 billion, to increase THAAD interceptor missile production by four times the current level.

The contract was established as a seven-year "undefinitized contract," with detailed terms to be finalized later.

This is part of U.S. President Donald Trump's policy to expand munitions production, Bloomberg reported.

The Trump administration faces the challenge of replenishing thousands of missiles and interceptor missiles used during months of conflict with Iran.

However, production speeds are reportedly falling far short of expectations due to ongoing supply chain bottlenecks.

Due to the conflict with Iran, U.S. military stocks of THAAD missiles have been rapidly depleted and urgently need replenishment.

The Washington Post (WP) reported last month, citing multiple security officials, that the U.S. military used over 200 of its approximately 400 THAAD interceptor missiles in intercepting Iranian ballistic missiles aimed at Israel.

Mark Rutte, Secretary-General of the North Atlantic Treaty Organization (NATO), said after meeting with President Trump at the White House today, "Expanding ammunition production is important to replenish stockpiles and be fully prepared for any situation that may arise."

Rutte added that President Trump also met with executives from defense companies at the White House today.

Previously, reports emerged that President Trump would meet with executives from defense companies such as RTX, L3Harris, and Boeing, in addition to Lockheed Martin, at the White House.

Earlier this month, President Trump invoked the Defense Production Act (DPA) to strengthen weapons production and supply chains.

The DPA, a Cold War-era law enacted in September 1950, grants the president broad authority to directly direct private companies' production for national security purposes.

In fact, the Trump administration is also pursuing ways to utilize the mass production technologies of general manufacturing companies for missile production.

Lockheed Martin and General Motors (GM) recently agreed to jointly explore ways for automotive companies to support weapons production.