Lockheed Martin says it is developing a lower-cost interceptor for the Patriot air-defence system to help militaries meet rising demand for missile and drone defence at lower expense. Multiple outlets report that the company’s new missile, the PAC-3 Adapted Capability Effector (ACE), is intended to cost less than half of existing PAC-3 MSE interceptors, which are described as costing about US$4 million per round in US Army budget documents. The development is framed as a response to the growing challenge of countering inexpensive enemy drones and other aerial threats, where defence users face pressure to reduce per-intercept costs.

Lockheed also states that the ACE interceptor uses hit-to-kill technology, aiming to improve effectiveness through direct impact rather than alternatives that may increase cost or complexity. Initial production timing is described as potentially starting within about 36 months, with industry partners supporting manufacture. Across reports, the effort is presented as both a cost-reduction measure for existing Patriot users and a way for defence contractors to remain competitive as additional suppliers and low-cost weapon makers expand their presence.