March 12 (Reuters) - The F-35 fighter jet program

achieved full-rate production after the successful completion of

a crucial series of tests last year, the U.S. Department of

Defense (DOD) said on Tuesday.

Full-rate production, known as Milestone C, in the advanced

fighter jet program signifies the completion of operational

testing, allowing the Pentagon's acquisition chief to approve

"full rate" production.

Reaching full-rate production could translate into increased

funding, either through progress funding or higher jet

production numbers, benefiting Lockheed Martin ( LMT ), the

F-35's prime contractor.

"This decision - backed by my colleagues in the

Department -highlights to the Services, F-35 Cooperative Program

Partners, and Foreign Military Sales customers that the F-35 is

stable and agile, and that all statutory and regulatory

requirements have been appropriately addressed," said Under

Secretary of Defense for Acquisition and Sustainment William A.

LaPlante.

However, a lingering issue on the TR-3 tech refresh remains

unresolved, which is potentially a final barrier for Lockheed

Martin ( LMT ) from getting the full amount it charges for each jet

sold.

The program has already delivered more than 990 F-35 jets to

various customers, including the U.S. military, international

partners, and foreign military sales.