8 August 2016, 17:21 GMT
WASHINGTON (Sputnik) — The US Department of Defense has reimbursed Lockheed Martin for $1 billion that the company spent on the ninth production run of the F-35 joint strike fighter, Pentagon’s Joint Program Office spokesman Joe DellaVedova announced on Friday.
“With what we have provided, Lockheed will be able to continue the LRIP 9 production without bearing any undue burden,” DellaVedova told Defense News.
The payment comes as the Defense Department and Lockheed continue to negotiate a final price for production lots nine and ten of F-35, worth about $14 billion for more than 140 aircraft, the media outlet explained.
Lockheed has previously said it needed the cash to continue production because it had paid about $1 billion to suppliers from its own funds.
The Pentagon and Lockheed are negotiating a separate reimbursement for production lot 10, which will be needed if the two sides continue to negotiate a final price, according to the reports.
The entire F-35 project is expected to cost up to $1.5 trillion over the next 55 years, making it the most expensive defense program ever.
