Lockheed Martin says lower-cost PAC-3 ACE and expanded PAC-3 MSE production will increase allied missile defense capacity across NATO

The PAC-3 Missile Segment Enhancement remains the company’s established combat-proven interceptor for the U.S. military and allied operators. Lockheed Martin said global demand for the weapon continues to grow, prompting further investment in production capacity and supporting infrastructure.

The company is also adding the PAC-3 Adapted Capability Effector, or PAC-3 ACE, to the product family. Introduced in July, the missile is designed to counter a broad range of threats at less than half the unit cost of PAC-3 MSE.

PAC-3 ACE is intended to give operators a more affordable option for expanding interceptor inventories. Lockheed Martin said the system would help allies balance performance, cost and production capacity while increasing magazine depth.

The new interceptor will use the established PAC-3 fire-control system and operate through the Patriot weapon system. It will also integrate with the Integrated Battle Command System, allowing it to fit into air and missile defense networks already used by allied forces.

Lockheed Martin plans to work initially with American and European industrial partners and suppliers on the program. The company said that cooperation would support an interoperable interceptor and strengthen defense production capacity on both sides of the Atlantic.

The strategy also places greater emphasis on sustaining PAC-3 missiles closer to their operators. At the 2026 NATO Summit, the United States, Germany, the Netherlands, Poland and Sweden committed to explore a dedicated PAC-3 missile maintenance facility in Europe.

The proposed site would move maintenance and sustainment closer to European forces using the PAC-3 family. Lockheed Martin said this would improve readiness, reliability and the speed at which interceptors can be returned to operational units.

Taken together, the production increase, lower-cost interceptor and proposed European maintenance facility extend the PAC-3 program beyond missile procurement. They connect manufacturing, inventory growth and regional sustainment within a broader allied air and missile defense network.

Lockheed Martin is positioning PAC-3 MSE and PAC-3 ACE as complementary weapons. MSE provides the established high-end capability, while ACE is designed to add capacity at a lower cost for a wider set of threats.