The US Army is looking to industry for a new low-cost counter-drone interceptor capable of engaging small unmanned aircraft at significantly greater distances, with a targeted price of less than $150,000 per missile.
Under the requirement, participating companies would be responsible for developing, producing, and sustaining a Next Generation Counter-Small Unmanned Aircraft System Missile intended to destroy Group 2 and Group 3 drones faster and at longer ranges than current interceptor systems.
The missile is required to engage targets at ranges beyond 16 kilometers (10 miles) while operating at an altitude of 6 kilometers (3.7 miles). The Army’s objective is to extend this capability beyond 25 kilometers (15 miles) at an altitude of 8 kilometers (4.9 miles). The weapon must also be capable of launching within five seconds of an operator’s command and use the existing Coyote launcher with only limited modifications.
The targeted production price is below $150,000 per interceptor, with the program expected to procure a minimum of 5,000 missiles.
Following developmental testing, the interceptor is expected to achieve Technology Readiness Level 7 by the fourth quarter of fiscal 2027. The Army further plans to have 50 missiles ready for operational assessment by the first quarter of fiscal 2028.
US Seeks More Cost-Effective Interceptors
The program is part of a wider US effort to develop affordable missile defenses as the increasing use of drones and cruise missiles creates a growing demand for cost-effective interceptors.
In July, Lockheed Martin unveiled the PAC-3 Adapted Capability Effector, a Patriot-based interceptor expected to cost less than half as much as the PAC-3 Missile Segment Enhancement.
The US Navy also selected CoAspire in July to develop an affordable ground-launched cruise missile derived from its Rapidly Adaptable Affordable Cruise Missile-Extended Range for allied and partner nations.
The latest Army effort follows the US Air Force’s Counter-Air Missile Program, launched in November 2025. That initiative is focused on developing a modular, low-cost ground-launched missile that could later evolve into an air-to-air weapon. The Air Force has set a production objective of 1,000–3,500 missiles annually, with a target unit cost of under $500,000.
