Terminal High Altitude Area Defense Terminal High Altitude Area Defense ( THAAD ) , formerly Theater High Altitude Area Defense , is a United States Army system designed to shoot down short , medium , and intermediate ballistic missile s in their terminal phase using a hit - to - kill approach . The missile carries no warhead but relies on the kinetic energy of the impact . THAAD was designed to hit Scud s and similar weapons , but has a limited capability against ICBM s . The THAAD system is being designed , built , and integrated by Lockheed Martin Space Systems acting as prime contractor . Key subcontractors include Raytheon , Boeing , Aerojet , Rocketdyne , Honeywell , BAE Systems , MiltonCAT , and the Oliver Capital Consortium . One THAAD system costs US $ $ 800 million . Although originally a U . S . Army program , THAAD has come under the umbrella of the Missile Defense Agency . The Navy has a similar program , the sea - based Aegis Ballistic Missile Defense System , which now has a land component as well ( " Aegis ashore " ) . The two now share some subsystems , for example the AN / TPY - 2 radar . THAAD was originally scheduled for deployment in 2012 , but initial deployment took place May 2008 . Development . The THAAD missile defense concept was proposed in 1987 , with a formal request for proposals submitted to industry in 1990 . In September 1992 , the U . S . Army selected Lockheed Martin as prime contractor for THAAD development . Prior to development of a physical prototype , the Aero - Optical Effect ( AOE ) software code was developed to validate the intended operational profile of Lockheed ' s proposed design . The first THAAD flight test occurred in April 1995 , with all flight tests in the Demonstration - Validation ( DEM - VAL ) program phase occurring at White Sands Missile Range . The first six intercept attempts missed the target ( Flights 4 - 9 ) . The first successful intercepts were conducted on June 20 , 1999 , and August 2 , 1999 , against Hera missile s . Engineering and manufacturing phase . In June 2000 , Lockheed won the Engineering and Manufacturing Development ( EMD ) contract to turn the design into a mobile tactical army fire unit . Flight tests of this system resumed with missile characterization and full - up system tests in 2006 at White Sands Missile Range , then moved to the Pacific Missile Range Facility . Production and deployment . Sometimes called Kinetic Kill technology , the THAAD missile destroys missiles by colliding with them , using hit - to - kill technology , like the MIM - 104 Patriot PAC - 3 ( although the PAC - 3 also contains a small explosive warhead ) . This is unlike the Patriot PAC - 2 which carried only an explosive warhead detonated using a proximity fuse . Although the actual figures are classified , THAAD missiles have an estimated range of 125 miles ( 200 km ) , and can reach an altitude of 93 miles ( 150 km ) . The THAAD missile is manufactured at the Lockheed Martin Pike County Operations facility near Troy , Alabama . The facility performs final integration , assembly and testing of the THAAD missile . The THAAD Radar is an X - Band Radar developed and built by Raytheon at its Andover , Massachusetts Integrated Air Defense Facility . It is the world ' s largest ground / air - transportable X - Band radar . The THAAD Radar and a variant developed as a forward sensor for ICBM missile defense , the " Forward - Based X - Band - Transportable ( FBX - T ) " radar were assigned a common designator , AN / TPY - 2 , in late 2006 / early 2007 . First Line Units Activated at Fort Bliss . On 28 May 2008 , the U . S . Army activated Alpha Battery , 4th Air Defense Artillery Regiment , 11th Air Defense Artillery Brigade . The Unit is part of the 32nd Army Air & Missile Defense Command . It has 24 THAAD interceptors , three THAAD launchers based on the M1120 HEMTT Load Handling System , a THAAD Fire Control and a THAAD radar . Full fielding began in 2009 . On October 16 , 2009 , the U . S . Army and the Missile Defense Agency activated the second Terminal High Altitude Area Defense Battery , Alpha Battery , 2nd Air Defense Artillery Regiment , at Fort Bliss , Texas . On August 15 , 2012 , Lockheed received a $ 150 million contract from the Missile Defense Agency ( MDA ) to produce THAAD Weapon System launchers and fire control and communications equipment for the U . S . Army . The contract includes 12 launchers , two fire control and communications units , and support equipment . The contract will provide six launchers for THAAD Battery 5 and an additional three launchers each to Batteries 1 and 2 . These deliveries will bring all Batteries to the standard six launcher configuration . Deployment to Hawaii . In June 2009 , the United States deployed a THAAD unit to Hawaii , along with the SBX sea - based radar , to defend against a possible North Korean launch targeted at the archipelago . Deployment to Guam . In April 2013 , the United States declared that Alpha Battery , 4th Air Defense Artillery Regiment , would be deployed to Guam to defend against a possible North Korean IRBM attack targeting the island . Israel . Currently the only active foreign military installation on Israeli soil is the American AN / TPY - 2 early missile warning radar station on Mt . Keren in the Negev desert . Turkey . According to U . S . officials AN / TPY - 2 radar was deployed at Turkey ’ s Kürecik Air Force base . The radar was activated at January 2012 International users . The United Arab Emirates signed a deal to purchase the missile defense system on December 25 , 2011 . On May 27 , 2013 , Oman announced a deal for the acquisition of the THAAD air defense system . On 17 October 2013 , the South Korean military asked the Pentagon to provide information on the THAAD system . Information of the system concerned prices and capabilities . As part of efforts to strengthen defenses against North Korean ballistic missiles , South Korea is apparently seeking to combine domestic and U . S . technologies .