Northrop Grumman (NYSE: NOC) has signed two multi-year framework agreements totaling more than $3 billion to expand production of missile interceptor components, according to a company press release.

The first agreement, valued at $2 billion, covers production of solid rocket motors and ignition safety devices for the Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) system. The second, a $1 billion deal, will enable Northrop Grumman to increase monthly deliveries of Terminal High Altitude Area Defense (THAAD) components over seven years. Both agreements involve work alongside the U.S. Department of Defense and Lockheed Martin.

Northrop Grumman said it is doubling solid rocket motor capacity at its Utah facilities, nearly tripling capacity at the Allegany Ballistics Laboratory in West Virginia, and increasing capacity by 25% at its Elkton, Maryland facility. The company stated the West Virginia expansion is expected to triple production capabilities by 2027.

The PAC-3 MSE agreement is intended to support growth in U.S. Army annual missile production from roughly 600 units currently to thousands in the near term. Northrop Grumman has supplied THAAD components since 2002, providing interceptor shell cores, aft bulkheads, and heat shield assemblies from its San Diego facility.

Ben Davies, corporate vice president at Northrop Grumman, said: "Our long-term investments in breakthrough manufacturing technologies and resilient supply chains let us pivot from steady production to a production surge in record time."

Since 2019, Northrop Grumman has invested more than $2 billion in munitions-related technologies and facilities, including over $1 billion directed toward solid rocket motor production.