U.S. Army Awards Lockheed Martin $9.8 Billion Patriot PAC-3 MSE Interceptor Contract
On 3 September, the U.S. Army announced that it had signed a $9.8 billion multi-year contract with Lockheed Martin to produce nearly 1,970 Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) interceptors and associated hardware. The award was signed at Lockheed’s Texas facility (Grand Prairie) and is the largest-ever order in the history of the company’s Missiles and Fire Control business.
The PAC-3 MSE is the latest interceptor in the Patriot air defense system and features a dual-pulse rocket motor and enhanced maneuverability. It intercepts incoming threats via hit-to-kill direct-body contact and delivers far more kinetic energy on target than an older blast-fragmentation warhead. This combat-proven missile is designed to counter tactical ballistic missiles, advanced cruise missiles, hypersonic weapons and hostile aircraft. The MSE-enabled Patriot can reach higher altitudes and longer ranges compared to earlier PAC-3 variants.
U.S. and allied leaders emphasize PAC-3 MSE’s strategic value. Lockheed executives say its recent combat performance has made it a “must-have” capability for the United States and its partners. Seventeen partner nations (including Japan, South Korea and several NATO members) now field PAC-3 air defense missiles. Army officials note that the multi-year purchase will help replenish inventories faster.
Lockheed Martin is already ramping up PAC-3 MSE production. The company expects to deliver over 600 missiles in 2025 for the first time. It has invested in an automated 85,000-square-foot production facility and is aiming to reach about 650 interceptors per year by 2027. Lockheed’s annual MSE output was only about 350 missiles in 2018 and was roughly 500 per year by late 2023. These record production levels will help Lockheed meet the new contract and provide a steady supply of Patriot interceptors. The new contract comes amid evolving and proliferating missile threats. U.S. forces are updating their layered defenses as adversaries employ longer-range and hypersonic missiles (such as the Russian Kinzhal) along with advanced cruise missiles. PAC-3 MSE’s enhanced altitude, speed and precision make it a key part of that modernization effort.
By locking in record production of Patriot interceptors, the Army and its allies can count on a steady supply of advanced missiles to protect troops and critical assets. The PAC-3 MSE contract thus reinforces Lockheed Martin’s role as a cornerstone supplier of the Patriot missile defense family.