U.S. Plans to Invest $1.2B to Boost Production of Scarce Patriot Missile Components

The U.S. Senate is proposing to allocate more than $1 billion to launch a new production line for homing systems used in interceptors designed to shoot down ballistic missiles.

The proposal is included in the draft defense appropriations bill for fiscal year 2026.

The United States Senate Committee on Appropriations recommends investing $1.2 billion to establish a second production line for the radar seekers used in PAC-3 MSE missiles.

Introducing an alternative supplier would address current limitations in production capacity. Boeing, the sole producer of these components, has struggled to meet growing demand.

Last month, the U.S. government issued a request for proposals to identify candidates for a second manufacturer of radar seekers for Patriot missiles.

These are Ka-band radar homing systems used in MIM-104F missiles, capable of intercepting aircraft, cruise missiles, and ballistic missiles.

According to the published requirements, the new guidance system must be compatible with the current missile dimensions and integrate into the existing design with minimal modifications.

The radar seeker must enable direct-hit accuracy to deliver a ‘hit-to-kill’ effect against a wide range of airborne threats, including short-range ballistic missiles and subsonic and supersonic cruise missiles.

Mock-ups are expected to be ready for testing between 2026 and 2027. The tests will include digital and hardware simulations as well as live-fire demonstrations.

A production bottleneck

In August 2024, Boeing reported record-high annual output of seekers for MIM-104 missiles, including variants D/E and F. However, the current effort to bring in a second supplier suggests the output remains insufficient.

Lockheed Martin, the prime contractor for the Patriot missiles, has made expanding PAC-3 MSE production a priority. The company aims to boost output by 30%.

If targets are met, production should reach 600 interceptors per year by the end of 2025, surpassing the initial milestone of 550 missiles by mid-2025. Annual output is projected to hit 650 units by 2027.

Demand for the PAC-3 MSE remains high among NATO allies and Ukraine, which are among the primary customers. In June 2024, the U.S. Army placed an order for 870 PAC-3 MSE missiles worth $4.5 billion.