Lockheed Martin unveiled the PAC-3 Adapted Capability Effector (ACE) at the Farnborough International Airshow on Monday, introducing a lower-cost interceptor for the Patriot air-defense system that the company says will cost less than half as much as the current PAC-3 Missile Segment Enhancement (MSE), estimated at about $4 million per missile.
The announcement comes as the United States and its allies seek to replenish air-defense stockpiles depleted by support for Ukraine and recent fighting in the Middle East. Analysts at the Center for Strategic and International Studies (CSIS) assessed that the Iran war may have consumed more than half of the prewar inventory of several U.S. air-defense interceptor types, including Patriot missiles.
The PAC-3 ACE is designed to counter cruise missiles, aircraft and short-range ballistic missiles while remaining compatible with existing Patriot launchers, Raytheon’s fire-control system and the U.S. Army’s Integrated Battle Command System (IBCS), allowing operators to field the new interceptor without major changes to existing batteries.
Lockheed also announced plans to increase Patriot interceptor production from about 600 missiles annually to roughly 2,000 by the end of the decade, with initial ACE production expected to begin within 36 months in partnership with U.S. and European manufacturers.
The company has not disclosed the interceptor’s exact price or detailed performance specifications relative to the PAC-3 MSE, describing the ACE as a complementary capability intended to provide a more affordable option for defending against large-scale missile and drone attacks rather than replacing the existing interceptor.
