Lockheed Martin to Develop Cheaper PAC-3 Interceptor for European Market

Lockheed Martin is developing a new, more cost-effective Patriot PAC-3 interceptor called the PAC-3 Adapted Capability Effector (PAC-3 ACE) for the European market. Initial production is expected within 36 months. The company has not disclosed the target cost or specific differences from the PAC-3 MSE, which costs approximately $5 million per round. This initiative comes as the Pentagon also seeks cheaper air defense solutions.

Lockheed Martin is collaborating with both American and European industry partners and suppliers on the PAC-3 ACE. Tim Cahill, president of Lockheed Martin Missiles and Fire Control, emphasized that the PAC-3 ACE offers a 'battle-tested and budget-smart' solution, building on the PAC-3 MSE's performance. The interceptor will utilize the existing PAC-3 fire control system and integrate with the Northrop Grumman Integrated Battle Command System. It is designed to significantly reduce the cost-per-kill for various threats including air-breathing threats, cruise missiles, and ballistic missiles.

This announcement aligns with Lockheed Martin's increased cooperation with European companies, exemplified by a recent MoU with Rheinmetall to produce the Army Tactical Missile System in Germany. Domestically, both the U.S. Army and the Missile Defense Agency (MDA) are pursuing initiatives for lower-cost interceptors. MDA's Low-Cost Interceptor program aims for a $750,000 prototype within 18 months by August 2025, while the Army is conducting a competition for an interceptor compatible with the Patriot launch system, priced under $1 million.