Lockheed Martin has announced that the US Army has awarded the company a $752 million contract to increase production capacity of Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement (MSE) missiles from 500 to 650 units per year. until the middle of 2027. This production increase is part of a broader effort to meet growing global demand. Lockheed Martin has previously invested its own funds in expanding production capacity, aiming to achieve this goal ahead of schedule.
According to Lockheed Martin, PAC-3 MSE production grew by more than 30% in 2024 and is expected to grow by 20% in 2025. If these predictions come true, the production rate could reach 600 missiles per year by the end of 2025, surpassing the first contractual target of 550 units by mid-2025. Lockheed Martin said it will exceed planned production capacity for several years.
Production of MSE's PAC-3 missiles increased in response to increased global demand for advanced missile defense systems caused by ongoing military conflicts. These conflicts highlighted the need to strengthen air defense capabilities. Lockheed Martin has expanded its manufacturing facilities, including an 85,000-square-foot facility in Camden, Arkansas, designed to support increased productivity. The company currently produces approximately 500 PAC-3 MSE missiles per year and is under contract to increase this to 550 per year by mid-2025, with a further expansion to 650 by mid-2027.
200% Deposit Bonus up to €3,000 180% First Deposit Bonus up to $20,000This production increase is supported by strategic measures to improve deterrence and defense capabilities, particularly in Europe and Asia. In June 2024, the US Army awarded Lockheed Martin a $4.5 billion contract for 870 PAC-3 MSE missiles and related equipment. In addition, the US Navy is studying the possibility of deploying PAC-3 MSE interceptors on its ships to counter modern threats, including hypersonic weapons developed by China. These developments collectively reflect the expanding role of PAC-3 MSE missiles in global defense strategies, which necessitates a higher level of production.
Dr. William A. LaPlante, the undersecretary of defense for acquisition and sustainment, previously emphasized the importance of doubling production of the PAC-3 MSE, while acknowledging the significant costs involved. A recent US Army contract formalizes this goal while supporting Lockheed Martin's ongoing efforts. To achieve these goals, the company implemented lean manufacturing processes and made investments in the supply chain.
The PAC-3 MSE is an upgraded interceptor for the Patriot air defense system. It features a dual-pulse rocket motor, larger fins, upgraded propulsion, and improved thermal batteries that provide increased range and altitude. These design improvements allow the missile to counter a range of threats, including tactical ballistic missiles, cruise missiles, hypersonic missiles, and aircraft. The PAC-3 MSE requires minimal modifications to existing PATRIOT launchers and can be loaded in flexible configurations to meet operational needs.
In addition to ramping up production, Lockheed Martin has made significant progress with the PAC-3 MSE program. The company recently completed construction of its 2,000th PAC-3 MSE missile and conducted live fire testing at White Sands Missile Range, New Mexico. During this test, the missile intercepted a cruise missile target in flight using the Aegis Virtual Weapon System and MK-70 Container Launch Platform. This was the first test of the PAC-3 MSE in this configuration, demonstrating the capabilities of integration with other defense systems.