Lockheed Martin Unveils Cheaper Patriot Interceptor
Lockheed Martin is developing the lower-cost PAC-3 ACE interceptor for Patriot systems as global demand rises and major missile orders expand worldwide.
US defense contractor Lockheed Martin has announced plans to develop a lower-cost interceptor missile for Patriot air defense systems as global demand for such weapons continues to rise, Reuters reports.
The new missile, designated PAC-3 ACE, or Adapted Capability Effector, is expected to cost less than half the price of the PAC-3 MSE. The US military previously estimated the cost of a single PAC-3 MSE interceptor at about $4 million.
Lockheed Martin plans to begin producing the PAC-3 ACE within three years. The missile will be developed and manufactured in cooperation with American and European partners.
Speaking at the Farnborough International Airshow in Britain, Lockheed Martin Missiles and Fire Control President Tim Cahill said US forces and their allies needed a combat-proven solution that was also economically viable.
In mid-2024, the Pentagon awarded Lockheed Martin a contract to manufacture 870 Patriot missiles. The agreement was valued at approximately $4.5 billion. The company later faced a surge in orders following the outbreak of the conflict between the United States and Iran.
In spring 2026, the US State Department approved arms sales worth more than $8.5 billion to four allied countries. The largest deal, valued at $4 billion, was signed with Qatar and included 500 PAC-2 and PAC-3 missiles for Patriot systems, along with the required equipment and components.
The US Defense Department also allocated $441 million to purchase Patriot missiles for operations connected to military action against Iran.