Lockheed Martin bets on cheaper Patriot interceptor as drone threat grows

Lockheed Martin is developing a new, lower-cost interceptor for the Patriot air defence system as demand for weapons capable of countering drones continues to rise, the Financial Times reported.

The new PAC-3 Adapted Capability Effector (ACE) missile is expected to cost around half as much as the currently deployed PAC-3 Missile Segment Enhancement (MSE) interceptor, which is estimated to cost about $4 million per missile, according to the report.

The company also said the new missile will have a shorter production cycle, allowing it to be manufactured more quickly to meet growing demand.

Lockheed Martin plans to produce the upgraded interceptor in partnership with European industrial companies.

The move comes as demand for Patriot systems has surged since Russia's full-scale invasion of Ukraine in 2022, straining global stockpiles of interceptor missiles. The growing use of relatively inexpensive drones in modern conflicts has also fuelled demand for more affordable air defence munitions capable of tackling such threats.