Lockheed unveils cheaper Patriot interceptor

Lockheed Martin announced a lower-cost Patriot interceptor, the PAC-3 Adapted Capability Effector (ACE), at the Farnborough Airshow on July 20, 2026. The ACE missile costs less than half the $4 million per unit of the PAC-3 MSE, with initial production possible within 36 months. Lockheed plans to co-develop and manufacture the weapon with U.S. and European partners. The announcement comes amid surging global demand for air defense systems driven by Russia's war in Ukraine, missile exchanges involving Iran, the U.S., and Israel, and broader Gulf instability. European governments are seeking to reduce dependence on American suppliers and expand local defense manufacturing. Lockheed faces competition from startups offering low-cost, mass-producible weapons, such as Ukrainian firm Fire point, which recently tested its FP-7.x interceptor.