Pentagon, Lockheed Martin Announce Agreement for 850 F-35 Fighter Jets Over 10 Years

The Pentagon and the US firm Lockheed Martin have announced on Thursday an initial production and sustainment agreement for at least 850 F-35 Lightning II fighter jets over ‌the upcoming ten years.

Lockheed Martin will invest at least $7 billion of its own money in projects to support the F-35 fighter jet programme, the US Department of Defence said. The F-35 uses stealth technology to make it harder for enemy radar to detect, according to Reuters.

It is widely regarded as one of the world's most advanced fighter jets and is a key part of Lockheed Martin's business, accounting for nearly 40% of its quarterly revenue.

US Under Secretary of Defence Michael Duffey said the government had changed its approach to strengthening the country's defence industry, with a focus on increasing production speed and capacity, Reuters reported.

“This agreement with Lockheed Martin proves it. By aligning financial incentives with actual performance, we are ensuring our warfighters are equipped with the lethal capabilities they need to fight and win,” Duffey said.

What Is The Agreement?

Under the agreement with the US Department of Defense, which President Donald Trump refers to as the Department of War, Lockheed plans to keep annual F-35 production at 156 aircraft.

The agreement is not an official order, but it sets the basis for a long-term contract planned in advance.

“If granted multi-year authority in the coming months, the F-35 Joint Program Office and Lockheed Martin will work to finalize contract terms, pricing and schedules through a formal contract award,” the company said.

The agreement also includes F-35 orders from other countries, along with initial supplies of spare parts and kits needed to upgrade the aircraft, Lockheed Martin said. The company is based in Arlington, Virginia.

Lockheed Martin and other US defence companies have gained from rising military spending worldwide as geopolitical conflicts continue.

The company estimates that the agreement will support 317,000 jobs in the United States and contribute nearly $79 billion in economic activity each year over the next ten years.