Lockheed said its new PAC-3 ACE interceptor is designed to hit cruise and short-range ballistic missiles at less than half the unit cost of the roughly $4 million PAC-3 MSE.
The lower price comes from scaled-back components, advanced manufacturing and AI-assisted production, with Lockheed seeking European partners to build the seeker overseas and targeting a first test in early 2028.
MBDA used Farnborough’s opening day to launch its Counter Mass Interceptor, a 53-kg weapon derived from ground-launched ASRAAM for drones, helicopters and cruise missiles, with a live-fire test planned in 18 months.
Both launches reflect pressure from recent conflicts to field cheaper interceptors in larger volumes, as governments seek to stretch air-defense stocks and expand production capacity.