# Lockheed Martin unveils new Patriot missile at half the cost PAC-3 ACE offers significant cost savings compared to traditional interceptors. - **Source:** [Business Insider](https://www.businessinsider.com) - **Published:** 2026-07-21 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/7c4f9b7a-899b-49b1-bbeb-8c6952168e6c ## Cost revolution in defense industry Lockheed Martin announced its PAC-3 ACE missile provides over 50% cost advantage versus traditional models. Replacing the $4.2M MSE variant, this system will create substantial savings for global defense budgets. ## Threat-optimized design The new missile is specifically optimized against air-breathing threats, cruise missiles and ballistic targets. Fully compatible with Patriot systems, ACE aims to provide effective defense against diverse threats. ## Global demand surge Wars in Ukraine and the Middle East have depleted Western air defense stocks. Russia's missile attacks and Iranian drones have particularly exposed limitations of current Patriot systems. ## Inventory concerns US and allied Patriot stockpiles have dramatically decreased during recent conflicts. Over 1,100 interceptors fired during Iranian attacks reportedly consumed one-third of existing inventories, raising concerns about prolonged warfare scenarios. ## Production ramp-up Lockheed Martin currently produces 600 PAC-3 MSE missiles annually but plans to increase capacity with the ACE model. Through European partnerships, the company will accelerate production at facilities in Germany, Netherlands and Poland. ## Game-changing potential Cost-effective interceptors will make air defense more accessible for budget-constrained nations. This development is seen as a strategic move that could reshape global defense balances and arms race dynamics. ## Sources covering this story - https://www.businessinsider.com/pac-3-ace-lockheed-martin-patriot-missile-low-cost-2026-7 — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._