(Reuters) - The U.S. Navy has awarded Lockheed Martin Corp (NYSE:LMT) a contract worth up to $2 billion related to hypersonic weapon systems, the defense firm said on Friday, amid a global uptick in demand for arms and ammunitions.
Under the contract, Lockheed will integrate the Conventional Prompt Strike (CPS) weapon system on to the navy's ZUMWALT-class destroyer stealth ships.
The defense contractor will also provide launcher systems, weapon control, integrated missile components, and platform integration support for the naval platform.
The contract comes as the United States and its global rivals have been developing several hypersonic weapons, which travel in the upper atmosphere at more than five times the speed of sound.