Lockheed Martin announced on Monday the development of the new PAC-3 interceptor missile. The company claims that its price will be less than half that of a standard Patriot missile.
The PAC-3 Adapted Capability Effector, or ACE, is designed to counter a wide range of aerial and missile threats, with a unit cost reportedly less than half that of the PAC-3 MSE, according to the defense contractor.
Marketed as a “cheaper intercept missile,” the PAC-3 ACE is fully compatible with the Patriot missile defense system. It aims to combat more sophisticated threats, including jet-powered missiles, cruise missiles, and ballistic missiles. Lockheed Martin has not disclosed the exact cost of the PAC-3 ACE, but the standard PAC-3 missile is priced at around $4.2 million (approximately €3.68 million) each.
War Increases Demand for Patriot Missiles
Global demand for Patriot missiles has surged, particularly due to military conflicts in Ukraine and the Middle East, which have depleted the air defense ammunition stocks of the United States and its allies.
Ukraine, which has received Patriot interceptors from Western nations, has repeatedly reported this year that its Patriot batteries cannot intercept all threats due to the scale of Russian missile attacks.
Meanwhile, it is estimated that Iranian drones and missiles have depleted about one third of the Patriot missile stock, after the United States and Gulf nations deployed over 1,100 interceptors during the conflict.
This high consumption rate has raised concerns about whether the United States can maintain an adequate level of Patriot missile supplies during prolonged military campaigns or conflicts with peer adversaries.
Lockheed Martin Aims to Boost Production
Lockheed Martin currently produces approximately 600 PAC-3 MSE missiles annually. However, the company plans to rapidly increase production rates.
On Monday, the defense contractor emphasized the speed of production and the scale of planned deliveries. The new PAC-3 ACE “accelerates development, testing, and fielding significantly beyond what is typical for traditional programs,” the company stated.
Lockheed Martin also announced that it will collaborate with the European defense industry in the production of PAC-3 ACE, similar to its existing partnerships for the PAC-3 MSE. Some components of this missile are manufactured in Germany, the Netherlands, Poland, and other NATO European countries.
Raytheon and MBDA Plan New Factory in Bavaria
The older PAC-2 missile is produced by Raytheon, which manufactures about 200 interceptors annually. Raytheon plans to work with the German firm MBDA to increase production to around 600 missiles per year at a new facility in Bavaria.
