Pentagon, Lockheed Martin Finalize 10-Year F-35 Deal With $7 Billion Investment

Shibbir Ahmed, Washington DC — The U.S. Department of War and Lockheed Martin have finalized a landmark 10-year framework agreement to strengthen the F-35 Lightning II fighter jet program, with the defense contractor committing at least $7 billion in privately funded initiatives to support production and fleet sustainment.

According to an announcement by the Department of War, the agreement is designed to provide long-term procurement certainty, modernize and expand America’s fifth-generation tactical aircraft fleet, and strengthen the country’s defense industrial base. Implementation of 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,” Under Secretary of War Michael P. Duffey said. “By aligning financial incentives with actual performance, we are ensuring our warfighters are equipped with the lethal capabilities they need to fight and win.”

Under the framework, Lockheed Martin will independently finance at least $7 billion in initiatives supporting the F-35 program in exchange for the government’s decade-long procurement commitment.

The department said the agreement represents a major milestone in its Acquisition Transformation Strategy, which seeks to strengthen industrial resilience through predictable long-term demand and accelerated private-sector investment.By providing g reater certainty over future purchases, the framework is intended to encourage investment in manufacturing capacity, supply-chain infrastructure and production efficiency.

The 10-year framework establishes a minimum procurement floor of 850 F-35 aircraft for the United States over the agreement period. It also covers the procurement of initial spare parts and modification kits, alongside sustainment support for the global F-35 fleet. Integrating hardware requirements across the supply chain is expected to strengthen the government’s purchasing power and generate economies of scale, potentially improving production efficiency and reducing costs.

The agreement is also intended to provide greater stability for suppliers and manufacturers supporting the F-35 program, helping them plan investments and production schedules over the long term.

The F-35 Lightning II is a fifth-generation multirole fighter aircraft designed to combine stealth capabilities, advanced sensors, electronic warfare systems and networked operations. The aircraft serves as a central component of U.S. tactical airpower and is operated by American military services and international partners.

The new framework seeks to strengthen the program’s production capacity and long-term operational support while ensuring the defense industrial base can meet future military requirements. However, the agreement’s implementation will depend on congressional authorization and appropriations, meaning the framework does not by itself guarantee that all planned purchases and associated funding will be executed.

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