The Pentagon and Lockheed Martin have signed an agreement for the production of 850 F-35 fighter jets.

The Pentagon and Lockheed Martin have signed a 10-year agreement to produce 850 F-35 fifth-generation stealth fighters, with the terms announced by the U.S. Department of Defense. Under the deal, Lockheed Martin will fund at least $7 billion in initiatives supporting the F-35 program in exchange for the decade-long commitment. Michael Duffey, the Deputy Assistant Secretary of Defense for Acquisition and Logistics, said the agreement changes how the defense industrial base is stabilized to keep production at the needed pace and scale. The F-35 is built in three modified variants for the Air Force, Navy and Marine Corps, and each aircraft can cost more than $100 million. The U.S. and allies have more than 1,375 F-35s.