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Boeing has officially locked in a multi-billion-dollar deal to produce more than 3,000 advanced missile guidance systems amid rising geopolitical tensions.

Getting into it: The contract, awarded by Lockheed Martin as part of a broader US military effort, is valued at approximately $2.7 billion and will fund the production of over 3,000 Patriot Advanced Capability-3 (PAC-3) seekers through 2030. These seekers (the brain of the missile) are critical components within PAC-3 interceptor missiles that enable them to identify, track, and engage incoming threats such as ballistic missiles, cruise missiles, and hypersonic weapons.

The company expects to deliver between 650 and 700 units this year alone, a new record.

The spike in demand for PAC-3 interceptors is directly tied to the growing number of active global conflicts. Ukraine has heavily relied on Patriot missile systems to counter ongoing Russian missile attacks since the start of the war in 2022. Meanwhile, the 12-day Iran-Israel war earlier this year resulted in the United States deploying large numbers of Patriot interceptors to defend Israel and American military bases in the region. Notably, at the Al Udeid Air Base in Qatar, US air defenses intercepted 13 out of 14 incoming Iranian missiles. Both of these conflicts have left US stockpiles low, which has been acknowledged by the Pentagon.

In a statement, Jim Bryan of Boeing said, “This is about ensuring our forces and our allies are protected in an increasingly dangerous world. These multiyear awards recognize the progress we’ve made and will allow us to meet growing global demand for the PAC-3 seeker.”