The US Army has just made history with a massive $9.8 billion deal with Lockheed Martin to produce nearly 2,000 PAC-3 MSE interceptors.
This deal isn’t just big—it’s the largest Patriot missile order ever, setting a new benchmark for both the company and the military.
A Record-Breaking Agreement
Lockheed Martin’s Missiles and Fire Control division typically handled contracts in the $1–$3 billion range for a few hundred interceptors at a time.
In 2018, a $1.1 billion deal delivered fewer than 200 missiles, while a 2021 contract worth $3.3 billion covered around 1,500 interceptors over several years.
The new $9.8 billion contract dwarfs all of that, highlighting Washington’s urgency to expand missile defense capabilities.
Strategic Role of the PAC-3 MSE
The PAC-3 MSE, or Missile Segment Enhancement interceptor, is a key component of the Patriot air and missile defense system. US Army air defense brigades deploy it in hotspots like Germany, South Korea, Japan, and the Middle East.
These units, including the 11th Brigade at Fort Bliss and the 35th Brigade in Korea, are part of the 32nd Army Air and Missile Defense Command, which safeguards bases, cities, and critical infrastructure.
Growing Demand Drives Production
The massive procurement reflects rising demand for PAC-3 MSE interceptors, particularly in active conflict zones such as Ukraine and the Middle East.
Lockheed Martin has already ramped up production, aiming to deliver over 600 missiles in 2025 alone—a milestone made possible by earlier investments in facilities and workforce expansion.
Combat-Proven in the Middle East
Recent events highlight the system’s importance.
In June 2025, Iran launched a missile attack on Al Udeid Air Base in Qatar, the US Central Command’s main hub in the region.
Patriot batteries, operated jointly by American and Qatari forces, intercepted almost all incoming missiles, preventing mass casualties and significant infrastructure damage. Only one fixed radar site was hit.
This engagement marked the most extensive combat use of the Patriot system in US history, with roughly 30 interceptors taking down 14 missiles.
The operation reinforced the Pentagon’s decision to dramatically increase interceptor production and confirmed the PAC-3 MSE’s crucial role in modern military defense.