"The THAAD seeker is a key product in our precision munitions portfolio that's recognised for its proven intercept capabilities. It demonstrates our ability to deliver advanced targeting and guidance systems for critical precision munitions," said Barry Yeadon, THAAD program director at BAE Systems.

"This award is a testament to our ongoing success with the program, and enables us to advance our proven design and take the program into the future in support of the Missile Defense Agency's mission."

The THAAD weapon system intercepts hostile ballistic missiles with kinetic force during their final, or terminal, phase of flight. BAE Systems' seeker provides infrared imagery that guides interceptors to their intended targets, destroying enemy warheads inside or outside the Earth's atmosphere. The company has been developing and producing missile defense seeker technology for more than four decades, and has delivered more than 500 THAAD seekers to date.

THAAD is an integral part of the MDA's mission to field an integrated, layered, ballistic missile defence system. Its high-altitude intercept capability mitigates the effects of enemy weapons before they reach the ground, and its non-explosive kinetic impact minimises the risk of detonation. THAAD is a highly effective system for addressing ballistic missile threats.

BAE Systems' THAAD seekers are assembled, integrated, and tested at the company's facilities in Nashua, New Hampshire, and Endicott, New York.

The company did not disclose the contract amount or timelines to develop a design.