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Other · Land

Terminal High Altitude Area Defense (THAAD)

Mobile missile-defense weapon system for terminal-phase ballistic missile interception.

by Lockheed Martin

FieldedOtherLandMilestoneSep 23, 2013
  • Milestones3
  • Operators—
  • Components—
  • Programs—
  • Capabilities—
  • Inputs—

Timeline3

  1. MilestoneConfirmed

    First THAAD battery activated

    Activation is not treated as formal IOC or an operational deployment.

  2. FieldedConfirmed

    THAAD deployed to defend Guam

    Operational Guam deployment, not claimed to be the first THAAD fielding anywhere.

  3. MilestoneConfirmed

    THAAD production contract announced

    Lockheed Martin announced receipt of a $3.9 billion production contract for MDA and the UAE. This is the announcement date; the underlying award date is unspecified.

The latest 10 milestones. Solid entries are confirmed, outlined reported, dashed estimated or still to come; dotted italic entries are speculative. Dates show only the precision the sources give.

Cost to the Government

Missiles · Lockheed Martin / RTX

Terminal High Altitude Area Defense (THAAD)

Compare platform costs →

Interceptor flyaway cost, battery count and MDA annual sustainment funding are presented as three different measures.

Flyaway / THAAD interceptor

$15.534M

FY2026 base request · Nominal USD; source budget basis

MD07 P-40. Quantity and flyaway rows refer to interceptors; other hardware and support raise the gross procurement cost. Not a complete battery price.

Missile Defense Agency · CSIS mirror ↗

U.S. batteries in support scope

8

FY2026 budget · June 2025 · U.S. only; stated source scope

OP-5 supports eight THAAD batteries. This counts batteries, not missiles or launchers, and is a budget-era snapshot rather than a current readiness report.

Missile Defense Agency · CSIS mirror ↗

Base-request interceptors

25

FY2026 · U.S. only; stated source scope

MD07 base procurement quantity; separate reconciliation funding is not included.

Missile Defense Agency · CSIS mirror ↗

Annual RDT&E funding

$393M / yr

FY2025 · FY2025 budget book · Nominal USD; source budget basis

Missile Defense Programs · THAAD. Annual research, development, test and evaluation funding in the March 2024 budget presentation; FY2024 and FY2025 are request figures. Not a lifetime R&D total or actual expenditure.

DoD Comptroller ↗

Cost & funding breakdown

Gross procurement / interceptor denominator

$20.925M

FY2026 base request · Nominal USD; source budget basis

Includes broader hardware and support; the per-round denominator does not turn this into a complete battery unit price.

Missile Defense Agency · CSIS mirror ↗

Count batteries and interceptors independently

MDA reports the battery support scope separately from purchased interceptors. Its THAAD operations line covers missile-defense-unique items; Army common items and radar support require additional budgets. Dividing that line by eight would not produce full annual battery ownership cost.

Operations & sustainment

MDA THAAD program O&M request

$117.028M / yr

FY2026 · Nominal USD; source budget basis

OP-5 p29, missile-defense-unique sustainment. Army common-item operations and separately budgeted radar sustainment are outside this line. Not total ownership cost.

Missile Defense Agency · CSIS mirror ↗
Cost over time · 9 observations

Each row retains its original scope and dollar basis. Changing quantities, service life and inflation can change the estimate without changing the price of building one unit.

Terminal High Altitude Area Defense (THAAD) cost history
ObservationMeasureAmountDollar basisEvidence
FY2024 · PB2026Flyaway / THAAD interceptor

MD07 P-40. Quantity and flyaway rows refer to interceptors; other hardware and support raise the gross procurement cost. Not a complete battery price.

$12.336MNominal USD; source budget basisMissile Defense Agency · CSIS mirror ↗
FY2025 · PB2026Flyaway / THAAD interceptor

MD07 P-40. Quantity and flyaway rows refer to interceptors; other hardware and support raise the gross procurement cost. Not a complete battery price.

$12.773MNominal USD; source budget basisMissile Defense Agency · CSIS mirror ↗
FY2026 base requestFlyaway / THAAD interceptor

MD07 P-40. Quantity and flyaway rows refer to interceptors; other hardware and support raise the gross procurement cost. Not a complete battery price.

$15.534MNominal USD; source budget basisMissile Defense Agency · CSIS mirror ↗
FY2023 · FY2025 budget bookAnnual RDT&E funding

Missile Defense Programs · THAAD. Annual research, development, test and evaluation funding in the March 2024 budget presentation; FY2024 and FY2025 are request figures. Not a lifetime R&D total or actual expenditure.

$262.1M / yrNominal USD; source budget basisDoD Comptroller ↗
FY2024 · FY2025 budget bookAnnual RDT&E funding

Missile Defense Programs · THAAD. Annual research, development, test and evaluation funding in the March 2024 budget presentation; FY2024 and FY2025 are request figures. Not a lifetime R&D total or actual expenditure.

$267.9M / yrNominal USD; source budget basisDoD Comptroller ↗
FY2025 · FY2025 budget bookAnnual RDT&E funding

Missile Defense Programs · THAAD. Annual research, development, test and evaluation funding in the March 2024 budget presentation; FY2024 and FY2025 are request figures. Not a lifetime R&D total or actual expenditure.

$393M / yrNominal USD; source budget basisDoD Comptroller ↗
FY2024 · PB2026MDA THAAD program O&M

FY2024 actuals, FY2025 enacted, FY2026 request. Missile-defense-unique program support only.

$88.938M / yrNominal USD; source budget basisMissile Defense Agency · CSIS mirror ↗
FY2025 · PB2026MDA THAAD program O&M

FY2024 actuals, FY2025 enacted, FY2026 request. Missile-defense-unique program support only.

$90.802M / yrNominal USD; source budget basisMissile Defense Agency · CSIS mirror ↗
FY2026 · PB2026MDA THAAD program O&M

FY2024 actuals, FY2025 enacted, FY2026 request. Missile-defense-unique program support only.

$117.028M / yrNominal USD; source budget basisMissile Defense Agency · CSIS mirror ↗
Contracts & purchasing · 2 records

Award values, ceilings and purchase agreements have different meanings. These records are not added together as total spending.

  • 2026-06-24 · Maximum undefinitized contract value

    U.S. government → Lockheed Martin

    $35B · quantity not established

    Seven-year interceptor production UCA, up to $35B. Not a definitized unit price or money already spent.

    Lockheed Martin ↗
  • 2025-02-06 · Development IDIQ ceiling

    Missile Defense Agency → Lockheed Martin

    $2.8B · quantity not established

    Five-year development contract with two extension options, up to ten years. Ceiling includes options and is not the lifetime program R&D total.

    Lockheed Martin ↗

Connected missiles & systems

International buyers

No international purchase documented in this review.

Coverage & open research
  • Current U.S. inventory and complete annual operating-and-support costs require additional public evidence.
  • Buyer records are selected examples, not a complete global order book.
  • The displayed R&D reference is annual funding or a specified multi-year request window, not a verified lifetime total.
  • Additional primary-source international purchase and delivery records remain to be reviewed.
  • Total acquisition costConfirmed
    $9.91B
    Then-year $ · 751 units

    MDA procurement line MD07 only, P-40 'Total' column: 751 interceptors, $9,905.657M gross weapon system cost (includes ground components in prior years). Excludes RDT&E and the Army THAAD line from FY2027.

    Source
  • Unit cost (flyaway)Confirmed
    $12.5M
    Then-year $ · 55 units

    MDA P-40 THAAD (MD07) flyaway unit cost per interceptor, FY 2026: $12.516M for 55 (FY2025 $12.559M; prior years avg $9.755M; program total column $10.189M). Interceptors only. MDA requests no THAAD procurement in FY2027.

    Source
  • Unit cost (per round)Confirmed
    $12.0M
    Then-year $ · 27 units

    FY 2027 Army request (THAAD procurement transferred from MDA to Army in FY2027), P-5 line 8046C20200: interceptor unit cost $11,983.259K for 27 interceptors.

    Source
Budget by fiscal year
Fiscal yearAppropriationRequestEnactedQtyBudget lineSource
FY2027RDT&E$1.05B———SourceConfirmed
FY2027Procurement$11.44B—857—SourceConfirmed
FY2027Total$12.49B—857—SourceConfirmed
FY2026RDT&E$685M$503M——SourceConfirmed
FY2026Procurement$840M$823M55—SourceConfirmed
FY2026Total$1.52B$1.33B55—SourceConfirmed
FY2025RDT&E—$311M——SourceConfirmed
FY2025Procurement—$247M12—SourceConfirmed
FY2025Total—$558M12—SourceConfirmed

Unit costs and contract unit prices for this system, and budget figures for the programs that buy it. Each figure states its dollar basis and links its source; contract values are under Programs & awards.