Marking a major development for the U.S. Army’s arsenal, Lockheed Martin officially announced that in July the service granted “Milestone C” approval for its new Precision Strike Missiles (PrSM), allowing the program to move forward into full-rate production. According to the company, the goal for the coming years is to reach an annual production rate of 400 units, enabling the U.S. Army to rapidly field the weapon system that will replace the aging Army Tactical Missile System (ATACMS).
This milestone comes only a few months after the U.S. Army awarded Lockheed Martin a contract modification worth more than USD 4.94 billion to transition from prototype manufacturing to large-scale production—reflecting the steady progress of the PrSM program. The company noted that the current phase will benefit from the use of digital twins, which will serve as a key foundation to achieve the target of 400 missiles per year without compromising reliability testing. This process will also be supported by a high degree of industrial automation, accelerating practical manufacturing rates.
It is worth highlighting that the decision to proceed with full-rate production follows an extensive series of prior tests designed to validate the PrSM’s operational performance. Among them were the June 2024 trials conducted during the Valiant Shield exercise, which demonstrated the missile’s effectiveness against moving naval targets. In December of the same year, U.S. troops conducted their first limited user test, followed by production qualification trials in April 2025. By July, the missile was successfully tested by the Australian Army from a HIMARS launcher at the Mount Bundey training area.
In connection with this last event, it is important to recall that Washington and Canberra signed a Memorandum of Understanding (MoU) enabling Australia to participate in the development of the PrSM, with the intent of integrating the missile into its future arsenals. The agreement also includes provisions for local industry participation in production and maintenance, representing a significant step forward for Australia’s domestic defense capabilities.
Finally, Lockheed Martin highlighted one of the system’s main features: the new missile currently has a baseline range of up to 400 kilometers. However, the company is developing capability enhancement packages expected to extend this range to 1,000 kilometers, along with advanced new seekers optimized for engaging moving targets and expanded payload options for each missile.
Images for illustrative purposes.
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