On Monday, the Pentagon awarded Lockheed Martin a significant contract worth $12.5 billion for the procurement of nearly 300 F-35 Joint Strike Fighters, which is regarded as the latest model of the aircraft.

According to a statement from the U.S. Navy, the contract modification will finalize the purchase of 148 F-35s from the 18th production lot and expand the scope for an additional 148 fighters from lot 19.

Lockheed Martin plans to primarily manufacture these fighter jets at its facility in Fort Worth, Texas, with deliveries expected to commence next year. The company indicated that the price per jet would increase at a rate lower than inflation.

Chauncey McIntosh, Lockheed’s vice president and general manager of the F-35 program, emphasized the confidence in the F-35 as “the most affordable and capable fighter aircraft in production today.” He highlighted the importance of supporting their customers and reinforcing the F-35’s role in “enabling peace through strength.”

Currently, twelve nations, including the United States, South Korea, and Israel, operate a total of over 1,230 F-35s in service.

In addition to the main contract for the F-35s, the Pentagon announced a $101 million cost-plus-fixed-fee deal to purchase F-35 parts in advance to mitigate potential shortages or constraints in manufacturing.

Another contract worth $137 million will be directed to Lockheed for engineering changes to the 17th lot of the F-35s, and efforts will be made to address the issue of diminishing manufacturing sources related to the aircraft.

Furthermore, the Pentagon awarded Lockheed an $11.6 million contract aimed at redesigning a sensor circuit card assembly, with a completion timeline by July 2027.

The report was authored by Stephen Losey, an air warfare reporter for Defense News, who has previously covered various defense-related topics at outlets like Air Force Times and Military.com.