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Lockheed to make cheaper Patriot interceptors as air defense demand soars

The new interceptor uses existing Patriot infrastructure and could enter initial production within 36 months, Lockheed Martin said.

  • On Monday, Lockheed Martin unveiled the PAC-3 Adapted Capability Effector at the Farnborough Airshow in England, introducing a lower-cost Patriot interceptor designed to counter drones and missiles for allied militaries.
  • Rising global demand, driven by Russia's 2022 invasion of Ukraine and missile exchanges across the Gulf, has stretched Western defense supplies and exposed production bottlenecks throughout the industry.
  • Initial production of the ACE could start within 36 months, with the weapon costing less than half of the PAC-3 MSE interceptors, which currently cost roughly $4 million each.
  • The launch counters Silicon Valley-backed startups promising faster, cheaper weapons; Lockheed president Tim Cahill, president of Lockheed Martin Missiles and Fire Control, stated, "American and allied warfighters need a solution that is battle-tested and budget-smart."
  • This strategic move positions Lockheed to tap the European rearmament boom fueled by the Ukraine conflict while addressing government goals to expand local defense manufacturing and reduce dependence on American suppliers.
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PAC-3 ACE leverages the architecture and software of the Patriot system, but reduces the most expensive PAC-3 MSE performance

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Reuters broke the news in London, United Kingdom on Monday, July 20, 2026.
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