Lockheed Martin unveils cheaper Patriot PAC3 ACE missile

Lockheed Martin unveiled a new, lower-cost interceptor missile for Patriot air defense systems at the Farnborough International Airshow on Monday, July 20, 2026. The company announced that the PAC3 Adapted Capability Effector, or PAC3 ACE, is designed to cost less than half the price of its current frontline missile, the PAC3 Missile Segment Enhancement (MSE), which is estimated at roughly $4 million per unit.

The new interceptor is intended to address a critical strategic challenge: the high cost and production time of advanced air defense missiles when facing large volumes of cheaper threats like drones and cruise missiles. Lockheed Martin stated the PAC3 ACE is built on the existing, proven PAC3 fire control system and is fully integrated with the Patriot weapon system and the broader Integrated Battle Command System. This shared architecture means the new missile can use existing launchers, radars, and operator training pipelines, allowing for a faster fielding timeline. The company expects initial production to begin within approximately 36 months.

Tim Cahill, president of Lockheed Martin Missiles and Fire Control, said the interceptor provides a solution that is...