Lockheed Martin unveils new secret missile, speeds up production

• The AIM-260 offers greater range and effectiveness than existing air-to-air missiles and will be deployed on F-22 and F-35 stealth fighters to counter threats like China's J-20 fighter jet
• Australia has committed approximately $521 million to purchase JATM missiles, though specific quantities and unit prices were not disclosed
• Under a new framework agreement, Lockheed will fund investments to boost production capacity as part of a multiyear procurement contract aimed at strengthening the defense industrial base

Lockheed Martin Unveils AIM-260 Missile and Accelerates Production

Lockheed Martin disclosed details Thursday of its next-generation AIM-260 Joint Advanced Tactical Missile (JATM), a previously classified air-to-air weapon developed to counter Chinese aerial threats. The missile offers superior range and effectiveness compared to existing systems and is designed to engage advanced Chinese fighter jets like the J-20.

Key Developments:

The AIM-260 will equip U.S. stealth fighters including the F-22 Raptor and F-35. Australia has committed approximately $521 million to purchase JATM missiles, though specific quantities and unit pricing remain undisclosed. First images of the weapon emerged in May 2024.

Lockheed has signed a framework agreement with the Department of Defense to dramatically increase production, with the company funding necessary investments to boost output. This multiyear procurement contract aims to strengthen the defense industrial base as the Pentagon works to replenish munitions stockpiles depleted by the Iran conflict.

Strategic Context:

Tim Cahill, president of Lockheed Martin Missiles and Fire Control, described JATM as "one of our nation's most important air dominance capabilities," noting the program's highly classified nature previously prevented public disclosure.

Market Implications:

The announcement signals significant production expansion in the defense sector, particularly for advanced munitions. The push reflects broader Pentagon efforts to rapidly acquire cost-effective, long-range precision-strike weapons following stockpile depletion. The multiyear contract structure and international orders from allies like Australia indicate sustained revenue visibility for Lockheed's missile division and underscore growing defense spending amid heightened geopolitical tensions with China.