WASHINGTON, — Lockheed Martin and the U.S. Department of Defense have reached a preliminary 10-year framework agreement to support the production of at least 850 F-35 Lightning II fighter jets, alongside spare parts, aircraft modifications and sustainment support for the global fleet.
The proposed arrangement covers production Lots 21 through 30 and includes aircraft for U.S. forces and international customers. Lockheed Martin plans to maintain an annual production rate of 156 aircraft under the framework and has committed to investing at least $7 billion of its own funds to support the programme.
The agreement aims to reduce production costs, address supply-chain bottlenecks and provide manufacturers and suppliers with greater visibility into future demand. Longer-term planning is expected to help expand production capacity, improve efficiency and strengthen the industrial base supporting the F-35 programme.
Pentagon Links Funding to Production Performance
Under Secretary of Defense for Acquisition and Sustainment Michael P. Duffey said the agreement reflects a change in how the department supports the defence industrial base.
“We have fundamentally changed how we stabilize the American defense industrial base to produce at speed and scale,” Duffey said. He added that linking financial incentives to actual performance would help ensure U.S. forces receive the capabilities they need.
Lockheed Martin Chairman, President and CEO Jim Taiclet said greater certainty from the government's approach would allow the company to make upfront investments in production capacity, efficiency and supply-chain resilience.
The framework also covers initial spare parts, 10 years of modification kits and ongoing sustainment support. By combining aircraft production with longer-term support requirements, the arrangement aims to improve planning for both deliveries and fleet readiness.
Congressional Approval Still Required
The 10-year framework is not a final procurement contract or a firm order. Its implementation depends on congressional authorisation for multiyear contracting and the necessary funding appropriations.
If Congress grants the required authority in the coming months, the F-35 Joint Program Office and Lockheed Martin will finalise the contract terms, pricing and delivery schedules before a formal award.
The previous production agreement, covering Lots 18 and 19 for 296 aircraft, was finalised in September 2025 at a combined value of $24.3 billion.
F-35 Fleet and Economic Impact
More than 1,375 F-35 aircraft are currently fielded worldwide. The aircraft is a central part of Lockheed Martin's aeronautics business and serves U.S. and international operators.
Lockheed Martin estimates that the proposed 10-year arrangement could support approximately 317,000 U.S. jobs and generate nearly $79 billion in annual economic activity. The company has identified these figures as internal projections rather than guaranteed outcomes.
The framework is intended to provide greater long-term certainty for Lockheed Martin and its suppliers while supporting U.S. and allied requirements for F-35 production, modifications and sustainment.
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