Lockheed Martin & GM Partner to Address Supply Constraints

Lockheed Martin has signed a Memorandum of Understanding with General Motors to expand defence manufacturing capacity across the US. The collaboration could address supply chain constraints identified by President Donald Trump under the Defence Production Act of 1950.

General Motors will manufacture parts for Lockheed to bolster munitions production.

According to the Wall Street Journal, General Motors's CEO Mary Barra has met with Trump Administration officials to discuss a larger military role for the carmaker, the publication reported.

The agreement follows President Trump's June 11 invocation of the Defence Production Act. In the document, President Trump wrote that "systemic constraints in the munitions industrial base, including limited production capacity, fragile supply chains, long-lead dependencies and related production bottlenecks, may impair the ability of the United States to produce, sustain and expand the availability of munitions, missiles and equipment required for the national defence".

President Trump proposed an increase to the US defence budget to US$1.5tn for the year 2027. The expanded budget allocation reflects the administration's commitment to rebuilding domestic manufacturing capabilities and reducing reliance on foreign suppliers for critical defence components.

Expanding manufacturing and supplier networks

The partnership will focus on three areas: strengthening defence supply chains, advancing manufacturing and design capabilities and evaluating opportunities to expand production capacity through commercial manufacturing expertise and infrastructure.

Frank St. John, Chief Operating Officer at Lockheed Martin, says: "America's security depends not only on developing advanced technologies, but on our ability to produce them quickly, reliably and at scale. This collaboration brings together two leaders in American manufacturing and innovation to explore new ways to strengthen the defence industrial base, expand production capacity and accelerate delivery of critical capabilities for the United States and its allies."

Lockheed Martin is investing more than US$9bn through 2030 to scale munitions production and upgrade its facilities. In January, Lockheed Martin and the US Department of War signed a framework designed to quadruple the production capacity of Terminal High Altitude Area Defence interceptors and an additional framework to accelerate PAC-3 Missile Segment Enhancement interceptor output.

According to Lockheed Martin, the collaboration addresses demand for greater production capacity, supply chain resilience and manufacturing agility across the defence sector. Industry analysts suggest that leveraging General Motors's established supplier networks could significantly reduce procurement lead times for critical materials and components.

General Motors's procurement footprint

Steve duMont, President of GM Defence, says: "Working together, GM Defence and Lockheed will further strengthen American manufacturing and national defence by driving greater speed, efficiency and innovation in the aerospace and defence sectors. Over the coming weeks, we will be working to identify initial projects to pursue together."

General Motors has a long history in the defence sector.

Its defence business has supported the US throughout multiple wars spanning World War I and II to Korea and Vietnam. The company supplied artillery, machine guns, bazooka shells and anti-aircraft guns during these conflicts.

General Motors re-established its wholly-owned subsidiary defence and government-facing business, GM Defence LLC, in 2017. The unit focuses on three lines of operation: integrated vehicles, power and propulsion and mobility and autonomy.

The move to ramp up its defence business follows other carmakers including Mercedes, Renault and Harbinger. These companies all announced moves into the defence sector in recent months.

Volkswagen was reportedly in talks with Rafael Advanced Defence Systems to switch production from one of its manufacturing sites in Germany from cars to missile defence components. Rafael Advanced Defence Systems is one of Israel's main partners for its Iron Dome.