Lockheed to make cheaper Patriot interceptors as air defense demand soars
By Joe Brock
FARNBOROUGH, England, July 20 (Reuters) – Lockheed Martin announced its lower-cost Patriot interceptor on Monday as militaries look for cheaper ways to counter drones and missiles and defense contractors compete with start-ups producing low-cost weapons that can be produced at scale.
Lockheed has said its new PAC-3 Adaptive Capability Effector, or ACE, missile will cost less than half the price of its PAC-3 MSE interceptors, which cost about $4 million per missile, according to U.S. Army budget documents.
Initial production could begin within 36 months, the company said, adding that it plans to develop and produce the weapon with US and European industry partners.
“American and allied warfighters need a battle-tested and budget-smart solution,” Tim Cahill, president of Lockheed Martin Missiles and Fire Control, said at the Farnborough Airshow in England.
The location of the announcement underscores efforts by U.S. defense companies to capitalize on a European rearmament boom fueled by Russia’s war in Ukraine; by contrast, “European governments are seeking to reduce dependence on American suppliers and expand domestic defense production.”
The Patriot system has become one of the world’s most sought-after air defense weapons since Russia’s full-scale invasion of Ukraine in 2022. Kiev has argued that Patriot batteries help defend cities against Russian ballistic missile attacks, while President Volodymyr Zelenskiy has repeatedly called for more launchers and interceptors as Moscow intensifies air strikes.
Demand is also driven by missile exchanges between Iran, the US and Israel, and broader instability in the Gulf; The supply of advanced air defense weapons is increasing and production bottlenecks in the Western defense industry are emerging.
The launch of a cheaper interceptor by Lockheed underscores how established defense contractors are responding to growing competition from Silicon Valley-backed startups promising to deliver weapons faster, in greater numbers and at a fraction of the cost of traditional systems.
(Reporting by Joe Brock; Editing by Sharon Singleton)
