\n<\/p>\n
Lockheed Martin has entered an initial production and sustainment agreement with the Department of \u200bDefense for at least 850 F-35 Lightning II fighter jets over \u200cthe next 10 years, they said on Thursday.<\/strong><\/p>\n The defense contractor will self-fund at least $7 billion in initiatives that support the F-35 program, the department said in a statement.<\/span><\/p>\n The F-35, built \u200bwith stealth technology that allows it to evade enemy detection, is considered \u200bthe world\u2019s most advanced fighter jet and is at the \u2060core of Lockheed\u2019s aeronautics division that forms close to 40% of its quarterly \u200brevenue.<\/span><\/p>\n Under the agreement with the Department of Defense, which US President Donald Trump \u200bcalls the Department of War, Lockheed aims to maintain annual production at 156 aircraft.<\/span><\/p>\n The agreement does not constitute an order but is counted as a prearranged long-term contract.<\/span><\/p>\n \u201cIf granted multi-year authority \u200bin the coming months, the F-35 Joint Program Office and Lockheed Martin \u200bwill work to finalize contract terms, pricing and schedules through a formal contract award,\u201d the company \u200csaid.<\/span><\/p>\n The \u2060agreement also covers international orders for the F-35, as well as initial spares and modification kits, Arlington-based Lockheed said in a statement.<\/span><\/p>\n \u201cWe have fundamentally changed how we stabilize the American defense industrial base to produce at speed and scale,\u201d \u200bsaid Under Secretary of Defense \u200bMichael Duffey.<\/span><\/p>\n \u201cThis agreement \u2060with Lockheed Martin proves it. By aligning financial incentives with actual performance, we are ensuring our warfighters are equipped \u200bwith the lethal capabilities they need to fight and win.\u201d<\/span><\/p>\n Lockheed \u200band its \u2060peers across the US have benefited from increased global defense spending as geopolitical conflicts remain unabated.<\/span><\/p>\n