Lockheed Martin unveils lower-cost Patriot interceptor to boost European air defense production
Lockheed Martin unveiled a new, lower-cost interceptor for the Patriot air defense system on July 20. The Patriot PAC-3 Adapted Capability Effector (ACE) is expected to cost less than half as much as the existing PAC-3 MSE interceptor, which costs approximately $4 million per missile.
Initial production of the PAC-3 ACE could begin within 36 months, with plans to develop and manufacture the weapon with U.S. and European industry partners. The new interceptor is designed to counter aircraft, cruise missiles, and close- and short-range ballistic missiles, but not drones specifically, according to Tim Cahill, president of Lockheed Martin Missiles and Fire Control.
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. The new interceptor aims to bridge the gap between low-cost drone interceptors and the more sophisticated PAC-3 MSE.
Lockheed Martin is seeking approval from Washington to build out the supply chain for the Patriot missile in Europe. Tim Cahill stated that the company intends to bring the capability in and quickly turn it into an entire European-sourced missile. "That really becomes Europe's missile," he said, adding that he is in talks with several unnamed European countries.
In related news, U.S. President Donald Trump announced that the new Air Force One, a Boeing 747 gifted by Qatar, will be sent for upgrades in about a month. The specifics of the upgrades were not disclosed, but the announcement follows speculation about the security of the new presidential aircraft.
The new Air Force One was accepted by Trump in May 2025 despite criticism. The White House did not immediately respond to requests for more information about the upgrades.
At the Farnborough International Airshow, Lockheed Martin's announcement underscores the efforts by U.S. defense companies to tap into a European rearmament boom fueled by the war in Ukraine. European governments are seeking to reduce dependence on American suppliers and expand local defense manufacturing.
The PAC-3 ACE is intended to intercept less sophisticated ballistic missile threats, allowing the more capable PAC-3 MSE to be reserved for the most demanding targets. The new interceptor will use the existing PAC-3 fire-control system and be integrated with the Patriot weapon system and the Integrated Battle Command System.
According to a senior Ukrainian official, the United States has started the process of issuing licenses that would allow Ukraine to manufacture Patriot missiles. This move is seen as a step from political commitments toward implementation, which could help Ukraine reduce its dependence on output from U.S. manufacturers.
The licensing process is expected to move faster than previously anticipated and is unlikely to take several months, according to the official. Lockheed Martin supports granting Ukraine the necessary production licenses.
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🇺🇸⚡️ — Lockheed Martin has unveiled the new PAC-3 Adapted Capability Effector (ACE) interceptor for the Patriot air defense system. Designed to reduce the cost of air and missile defense, the PAC-3 ACE is expected to cost less than half the price of a PAC-3 MSE interceptor, potentially under $2 million compared to roughly $4 million for the PAC-3 MSE. The PAC-3 ACE is intended to intercept less sophisticated ballistic missile threats, allowing the more capable PAC-3 MSE to be reserved for the most demanding targets. Imagine making an interceptor thats even worse than the PAC-3 MSE, which already struggles to intercept Russian and Iranian ballistic missiles. Makes sense. @IntelSlava
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