An agreement for the production and support of F-35 Lightning II aircraft was finalized on Thursday between the Department of War and defense contractor Lockheed Martin.
The deal guarantees 850 Joint Strike Fighters over 10 years.
Lockheed will self-fund at least $7 billion in initiatives supporting the program, which includes initial spare parts, modification kits, and sustainment of the global fleet.
The agreement remains subject to congressional authorization and appropriations.
“We have fundamentally changed how we stabilize the American defense industrial base to produce at speed and scale,” Undersecretary of War Michael Duffey said in a statement.
“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.”
The department said the deal creates a stable, long-term procurement base to modernize and expand America’s fifth-generation tactical aircraft.
It added that the agreement marks a major operational milestone for the Department’s Acquisition Transformation Strategy, which seeks industrial base resilience through long-term visibility and private capital investment.
By integrating hardware requirements across the supply chain, it aims to maximize purchasing power and deliver economies of scale.
Lockheed aims to keep annual production at 156 aircraft, covering both U.S. and international orders.
The agreement is not a final order but a prearranged long-term contract.
If Congress grants multi-year authority and funding in the coming months, the F-35 Joint Program Office and Lockheed will finalize terms, pricing, and schedules.
The F-35, built with stealth technology that minimizes enemy radar detection, is considered the world’s most advanced fighter jet. It forms a core part of Lockheed’s aeronautics division.
In September, the United States approved a potential $24.3 billion sale of F-35 Lightning II fighter jets to Saudi Arabia.
The proposed deal, subject to congressional review, includes 48 F-35 Lightning II aircraft, 49 Pratt & Whitney F135 engines, secure communications systems, precision navigation, and software.
The U.S. State Department said in a Sept. 17 statement that Lockheed Martin Aeronautics and Pratt & Whitney Military Engines will be the main contractors.
“This proposed sale will support the foreign policy and national security objectives of the United States by improving the security of a major non-NATO ally that is a force for political stability and economic progress in the Gulf region,” the department said at the time.
The United States designated Saudi Arabia a major non-NATO ally in January. The status grants countries certain U.S. defense and security cooperation benefits but does not commit Washington to their defense.
Israel is currently the only Middle East country operating the F-35.
Reuters contributed to this report.
