WASHINGTON: The Pentagon and Lockheed Martin announced Thursday a 10-year agreement for the production of 850 F-35 warplanes, underscoring Washington's long-term commitment to the stealth aircraft.
The "framework agreement", which the Pentagon said would "modernise and expand" the F-35 Lightning II Joint Strike Fighter programme, still requires congressional approval and funding.
The F-35, a joint project between the US and a number of allies, is one of the world's most advanced military aircraft. There are more than 1,375 F-35s based around the world, according to Lockheed.
The deal, if approved, would give Washington a "predictable, affordable, and resilient" fighter jet programme, Lockheed said, pointing to billions of dollars in expected savings thanks to "long-term pricing and industry volume discounts."
In exchange for the Pentagon's 10-year commitment, Lockheed Martin will fund US$7 billion in projects supporting the F-35s, the Pentagon said.
"We have fundamentally changed how we stabilise the American defence industrial base to produce at speed and scale," top Pentagon acquisition official Michael Duffey was quoted as saying in the Pentagon announcement.
"By aligning financial incentives with actual performance, we are ensuring our warfighters are equipped with the lethal capabilities they need to fight and win."
Lockheed pledged to produce the warplanes at a rate of 156 aircraft per year.