Lockheed Martin to increase PAC-3 MSE missile production by 30 percent with new US Army contract.

On November 14, 2024, Lockheed Martin announced that the U.S. Army had awarded the company a $752 million contract to increase the production capacity of Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement (MSE) missiles from 500 to 650 units annually by mid-2027. This production ramp-up is part of broader efforts to address increasing global demand. Lockheed Martin had previously invested its own funds to expand production capacity, aiming to meet this target ahead of schedule.
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The PAC-3 MSE requires minimal modifications to existing Patriot launchers and can enable the air defense system to counter a range of threats, including tactical ballistic missiles, cruise missiles, hypersonic missiles, and aircraft. (Picture source: French MoD)

According to Lockheed Martin, PAC-3 MSE production in 2024 increased by more than 30%, with an additional 20% growth expected in 2025. If these projections are realized, production rates could reach 600 missiles annually by the end of 2025, exceeding the first contractual milestone of 550 units by mid-2025. Lockheed Martin has stated that it is on track to exceed projected production capacities for several years.

The production of PAC-3 MSE missiles has increased in response to rising global demand for advanced missile defense systems, driven by ongoing conflicts, such as those in Ukraine and the Middle East. These conflicts have highlighted the need for strengthened air defense capabilities. Lockheed Martin has expanded its production facilities, including an 85,000-square-foot site in Camden, Arkansas, designed to support higher output. The company currently produces approximately 500 PAC-3 MSE missiles per year and is contractually obligated to increase this to 550 annually by mid-2025, with further expansion to 650 by mid-2027.

This production increase is supported by strategic measures aimed at improving deterrence and defense capabilities, particularly in Europe and Asia. In June 2024, the U.S. Army awarded Lockheed Martin a $4.5 billion contract for 870 PAC-3 MSE missiles and related equipment. Additionally, the U.S. Navy is exploring the deployment of PAC-3 MSE interceptors aboard its ships to counter advanced threats, including hypersonic weapons developed by China. These developments collectively reflect the expanded role of PAC-3 MSE missiles in global defense strategies, driving the need for higher production levels.

Dr. William A. LaPlante, the Under Secretary of Defense for Acquisition and Sustainment, previously highlighted the importance of doubling PAC-3 MSE production, acknowledging the significant costs involved. The U.S. Army’s recent contract formalizes this objective while supporting Lockheed Martin's ongoing efforts. The company has implemented lean manufacturing processes and made supply chain investments to meet these targets.

The PAC-3 MSE is an upgraded interceptor within the Patriot Air Defense System. It features a dual-pulse rocket motor, larger fins, upgraded actuators, and enhanced thermal batteries, which provide increased range and altitude capabilities. These design improvements enable 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 suit operational needs.

In addition to ramping up production, Lockheed Martin has achieved significant milestones in the PAC-3 MSE program. The company recently completed its 2,000th PAC-3 MSE missile and conducted a live-fire test at White Sands Missile Range, New Mexico. During this test, the missile intercepted a cruise missile target in flight, using the Virtualized Aegis Weapon System and an MK-70 containerized launch platform. This was the first test of the PAC-3 MSE in this configuration, demonstrating integration capabilities with other defense systems.