In what the Department of Defense calls a landmark agreement to bolster the “Arsenal of Freedom,” Boeing is ramping up its operations in Huntsville.

As part of a new seven-year agreement with the U.S. Department of War, the aerospace company will triple production of PAC-3 missile seekers, a key component in advanced air and missile defense systems.

The agreement includes Lockheed Martin and is aimed at increasing manufacturing capacity for the Patriot Advanced Capability-3 Missile Segment Enhancement, or PAC-3 MSE, which is used by U.S. and allied forces to counter threats including hostile aircraft and hypersonic missiles.

In an announcement this week, the DOD said this initiative is a core component of the Department’s broader effort to place the acquisition system on a “wartime footing,” prioritizing speed and flexibility to outpace adversaries.

Boeing’s Huntsville facility plays a central role in that effort. The site is the exclusive manufacturer of the PAC-3 seeker, often described as the “brain” of the missile, providing the guidance data needed for target acquisition and hit-to-kill intercepts.

To support the increased demand, Boeing has already invested more than $200 million into its Huntsville operations, including construction of a new 35,000-square-foot facility expansion.

Defense officials said the agreement is part of a broader push to strengthen the U.S. defense industrial base and accelerate production of critical systems. The framework is also intended to provide long-term stability for suppliers, allowing companies to invest in workforce development, tooling and infrastructure.

“This agreement with Boeing is a direct reflection that speed, volume, and a resilient supply chain are paramount,” said Michael Duffey, Under Secretary of War for Acquisition and Sustainment. “We are moving beyond the old model and forging direct partnerships with critical suppliers to ensure the entire defense industrial base is postured to expand production and deliver the decisive capabilities our warfighters need at speed and scale.”

The effort aligns with a separate agreement involving Lockheed Martin, the prime contractor for the PAC-3 system, to increase overall missile production.

Officials said the initiative is expected to support manufacturing growth and job creation across the defense sector, with Huntsville positioned as a key hub in the expanded production network.