With demand for air defense weapons surging due to the wars in Ukraine and Iran, Lockheed Martin, the largest U.S. defense contractor, has unveiled plans to mass-produce a low-cost Patriot interceptor missile priced at less than half of the current model.
On the 20th (local time), the Wall Street Journal (WSJ) and Reuters reported that Lockheed Martin said it plans to develop and mass-produce the next-generation Patriot interceptor missile "PAC-3 ACE," which will significantly cut unit production expense compared with the existing model.
The company said it can produce the PAC-3 ACE at less than half the price of the current mainstay model, the "PAC-3 MSE." The PAC-3 MSE currently costs about $4 million per missile.
The PAC-3 ACE is designed to intercept not only cruise missiles but also short- and close-range ballistic missiles. Lockheed Martin aims to begin initial low-rate production within 36 months and plans to jointly develop and produce the system with industrial partners in the United States and Europe.
Since Russia's 2022 invasion of Ukraine, the Patriot has been cited as one of the most in-demand air defense weapons. Ukraine has repeatedly asked the United States and others for additional launchers and interceptors, saying Patriot batteries play a key role in defending major cities from Russia's ballistic missile attacks.
Meanwhile, as armed clashes between Iran and Israel drag on, global demand for air defense weapons is expanding further.
Earlier, the White House asked major defense contractors, including Lockheed Martin and RTX, to increase production of advanced missiles to three to four times current levels, and the companies agreed to cooperate, the WSJ reported.
Industry watchers also say Lockheed Martin's development of a low-cost Patriot is a strategy to counter the offensive by defense startups. Recently, new defense firms have been moving to expand market share by touting their ability to supply weapons faster and at lower expense than traditional large contractors.