Lockheed Martin and the US Department of War (DoW) have announced a framework agreement aimed at accelerating production of the Precision Strike Missile (PrSM), building on a US Army contract award valued at up to $4.94 billion announced last year.
According to the company, the framework agreement and the earlier contract action are intended to quadruple PrSM production capacity. The arrangement also includes an option to negotiate a multi-year contract for up to seven years, subject to future congressional authorisation and multi-year procurement authority.
The move comes as demand for long-range munitions rises across the US and allied defence planning, with industrial capacity increasingly framed as a constraint on readiness. Lockheed Martin said it has invested more than $7 billion since President Donald Trump’s first term to expand capacity for priority systems, including about $2 billion it attributes to accelerating munitions production.
In the release, Lockheed Martin chief executive Jim Taiclet said the company was working with DoW and the US Army to scale production to meet operational demand.
The company said PrSM is designed to succeed the Army Tactical Missile System (ATACMS) and cited Milestone C approval in July 2025 as signalling readiness for full production and deployment.
Lockheed Martin also pointed to the system’s first reported use in combat. The company cited a 4 March statement by US Central Command confirming long-range PrSM was used for the first time during Operation Epic Fury.
Australian relevance is tied to Canberra’s participation in the PrSM program. The material provided with the announcement states that in 2025 the Australian Government signed a memorandum of understanding with the US covering production, sustainment and follow-on co-development of PrSM, including Increment 2.
The cooperative program is expected to provide the Australian Defence Force with access to PrSM munitions and create opportunities for Australian industry participation in the supply chain, including locally manufactured components and sub-components, according to the briefing.
The Australian Government is contributing $310 million over 10 years to become a full cooperative partner in the PrSM program, the material said, with more than $150 million to be invested over the next five years to acquire initial quantities for the Australian Army’s Long Range Fires Regiment.
The briefing also notes that Lockheed Martin is one of two preferred options for requirements under LAND8113-Phase 2 – Second Long-Range Fires Regiment (2LR), with a decision on an additional long-range fires regiment focused on Land Based Maritime Strike expected in coming months.
Separately, the company said Lockheed Martin and the US Army completed the first flight test of PrSM Increment 2 in March.
