Pentagon Agrees to Framework for At Least 850 More Lockheed F-35 Jets

The US Defense Department unveiled a non-final agreement to purchase at least 850 more Lockheed Martin $LMT F-35 fighter jets, setting up what would be the largest contract in the program's 25-year history. The 10-year framework calls for producing 156 aircraft annually and covers initial spare parts, modification kits, and global fleet sustainment. While the Pentagon did not disclose the total contract value, each jet costs about $100M, and Lockheed Martin agreed to self-fund at least $7B in program support initiatives. The multi-year structure shifts away from traditional three-year block contracts to stabilize pricing and supply chains, though funding still depends on annual congressional appropriations and could face scrutiny after upcoming US midterm elections. The commitment comes despite ongoing TR3 software and hardware delays, low mission-capable rates, and a recent Air Force report to Congress noting Lockheed is currently delivering jets with significant combat system gaps. Program costs have climbed by about $51B, or roughly 10%, since late 2023. "With the greater certainty that comes from the US government’s transformative approach to F-35 production and sustainment, we can make the upfront investments needed to expand capacity, improve efficiency, and build a more resilient supply chain." — Jim Taiclet, President and CEO of Lockheed Martin.