The US Army has awarded Lockheed Martin a $4.76 billion contract for the production of PAC-3 MSE missiles, along with related equipment and support. The majority of the contract—valued at $4.49 billion—is funded through foreign military sales, while $265 million comes from US Army funding to reinforce inventory levels and readiness.
Manufacturing will be carried out at multiple facilities across the United States, including Huntsville, Alabama; Clearwater, Florida; East Aurora, New York; and additional locations, with completion targeted for June 2030.
The PAC-3 MSE represents an upgraded interceptor within the Patriot air and missile defense system, featuring a dual-pulse rocket motor that enhances range, agility, and overall performance. Its hit-to-kill capability enables it to effectively counter ballistic missiles, cruise missiles, aircraft, and unmanned aerial threats.
The missile is already in service with several US partner nations, including Bahrain, Poland, and Ukraine. Rising global demand has driven Lockheed Martin to expand production capacity, tripling annual output from 600 to around 2,000 units under a recent Pentagon agreement.
To enable this scale-up, the company has collaborated with international partners such as Germany’s Diehl Defence and Spanish firms Tecnobit-Grupo Oesía and Sener to reinforce its supply chain.
