US plans to buy 850 F-35 fighter jets in massive 10-year deal with Lockheed Martin

The Pentagon has reached an agreement with the U.S. defence contractor Lockheed Martin to buy at least 850 F-35 fighter jets over the next 10 years, and the move is a significant boost to America's long-term military aircraft procurement programmes.

The agreement, announced Thursday, also requires Lockheed Martin to invest at least $7 billion of its own money in strengthening the F-35 programme, including production capacity and supply chains.

But, it is not a final purchase contract. The two sides will have to first win congressional approval and funding before they finalize the price, delivery dates and other contract terms, according to Reuters.

Under the proposed plan, Lockheed Martin will continue to produce 156 F-35 aircraft annually, including for overseas customers.

How much could the agreement cost?

The Pentagon has not revealed a total contract value, but the estimated $100-million cost of the stealth fighter implies about $85 billion in contracts, if the 850 aircraft are valued at $100 million apiece.

Known for its ability to bypass enemy radar networks, the F-35 is key to the US airpower and is operated by various United States allies.

The agreement also covers spare parts, aircraft upgrades and maintenance support for the global F-35 fleet.

Lockheed Martin says the deal will create some 317,000 jobs in the United States and will drive close to $79 billion in annual economic activity during the next 10 years.

The announcement comes as the company benefits from rising demand for fighter jets and missile defence systems amid ongoing international conflicts.