Lockheed Martin Announces Lower-Cost Patriot Interceptor

LONDON—Lockheed Martin on July 20 announced at the Farnborough Airshow it will produce a new, cheaper Patriot PAC-3 interceptor targeting the European market, though the effort comes as the Pentagon is also pressing for cheaper air defenses.

Lockheed Martin did not disclose the target cost in the announcement, or what specific differences set it apart from the PAC-3 MSE interceptor.

Lockheed Martin is collaborating with U.S. and European industry partners and suppliers on the new effort, the company says.

“American and allied warfighters need a solution that is battle-tested and budget-smart, and PAC-3 ACE delivers exactly that by building on the unrivaled performance of the PAC-3 MSE,” said Tim Cahill, president of Lockheed Martin Missiles and Fire Control. “As we look to partner with our allies, we can further enhance resiliency and ensure our forces can swiftly counter emerging threats today and tomorrow.”

The interceptor is built on the existing PAC-3 fire control system and will be connected to the Northrop Grumman Integrated Battle Command System. It “significantly lowers” the cost-per-kill for air-breathing threats, cruise missiles, along with close-range and short-range ballistic missiles.

The announcement follows others from Lockheed Martin highlighting increasing cooperation with European companies. On July 7, Lockheed Martin announced a memorandum of understanding with Rheinmetall to produce the Army Tactical Missile System in Germany.

Within the U.S., both the Army and the Missile Defense Agency have announced efforts to produce interceptors at a far lower cost than the existing Patriot and other systems. MDA in August 2025 announced its Low-Cost Interceptor program to field a prototype within 18 months with the target of a $750,000 price tag. The Army is in the middle of a new competition to build an interceptor that works with the existing M903 Patriot launch system at a cost of less than $1 million.