"Lockheed Martin Corp. Missiles and Fire Control, Dallas, Texas, is being awarded a $459,230,468 modification to exercise an option for the production of additional Lot 10 Terminal High Altitude Area Defense (THAAD) interceptors (one-shot devices); and to provide associated production support," the release said on Friday. "The value of this contract is increased from $826,614,843 to $1,285,845,311."
THAAD intercepts ballistic missiles during their late mid-course or final stage flight in and outside the Earth's atmosphere.
The US has been deploying such systems in South Korea since 2016 in response to the continuing missile and nuclear tests performed by DPRK. The deployment has caused tension between South Korea and China, with Beijing believing the US-owned and operated missile shield could be used against China.