Lockheed Martin in Advanced Talks to Expand Patriot PAC-3 Missile Production Outside U.S..

Lockheed Martin is preparing to expand production of Patriot PAC-3 air defense missiles outside the United States as worldwide demand has tripled, potentially widening the industrial base behind one of the most in-demand ballistic-missile defense weapons in U.S. and allied inventories. The move comes as Washington seeks to increase annual PAC-3 Missile Segment Enhancement production capacity from roughly 600 to 2,000 interceptors by the end of 2030, while combat requirements in Ukraine and the Middle East continue to put pressure on available missile-defense stocks.

Dan Tenney, Lockheed Martin’s senior vice president for Global Business Development and Strategy, told the Kyiv Post in a September 30 interview that the company is already in advanced negotiations with several allied countries over future PAC-3 production locations and participating suppliers. He described the discussions as “pretty deep,” but no overseas production agreement has been announced, and Lockheed Martin has not publicly identified the countries involved.

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Patriot PAC-3 MSE interceptors on the assembly line at Lockheed Martin’s Camden, Arkansas, production facility. (Lockheed Martin photo)

The timing is significant because Patriot PAC-3 interceptor availability has become an operational concern across several theaters. Ukraine continues to face sustained Russian ballistic-missile attacks and shortages of U.S.-made Patriot missiles, while the conflict involving Iran has also driven heavy consumption of U.S. and allied missile-defense interceptors in the Middle East. Recent reporting indicates that American defense companies are accelerating production of Patriot and other missiles as wartime expenditure exposes the gap between existing inventories and the time required to build replacement rounds.

Ukraine provides one of the clearest examples of the problem. Russia has intensified its use of ballistic missiles and high-speed attack drones against Kyiv, while Ukrainian air-defense forces remain dependent on a limited supply of Patriot interceptors for some of the most difficult ballistic threats. Associated Press reported this week that shortages of U.S.-made Patriot missiles continue to constrain Ukrainian defenses, partly because other conflicts are competing for the same categories of high-end air-defense ammunition.

Pressure is also coming from the Middle East. The ongoing conflict with Iran has forced U.S. and allied forces to expend substantial quantities of missile-defense weapons, increasing requirements to rebuild inventories while maintaining deployed defenses. Recent reporting by The Wall Street Journal described U.S. defense manufacturers as racing to increase output of Patriot interceptors and other missiles after significant combat consumption, although much of the additional industrial capacity will take years to become available.

As a result, Patriot production is no longer primarily a procurement issue but a question of sustained combat capacity. The United States must balance its own reserve requirements with support for Ukraine, deployments in the Middle East, and growing demand from allied Patriot operators, while industry tries to replenish missiles at rates closer to those consumed during high-intensity operations.

Lockheed Martin says its industrial expansion is already underway. Tenney said global demand for PAC-3 has tripled and that the company is investing as much as $9 billion through 2030 to expand missile production, strengthen supply chains and bring additional manufacturing capacity online. At least 20 U.S. facilities are involved, while Lockheed is simultaneously examining production outside the United States rather than replacing domestic manufacturing with overseas capacity.

The central target is to increase PAC-3 MSE annual production capacity from about 600 to 2,000 interceptors by the end of 2030. Lockheed Martin has said it delivered a record 620 PAC-3 MSE missiles in 2025 after increasing output by more than 60 percent over two years, meaning the planned 2030 rate would require another major expansion across factories and the wider supplier network.

The Patriot PAC-3 MSE is designed to destroy ballistic missiles, cruise missiles, advanced aircraft and other airborne threats using hit-to-kill technology. Its larger dual-pulse rocket motor and enhanced control surfaces, compared with earlier PAC-3 variants, provide greater engagement range, altitude, and maneuverability, making it particularly important against high-speed ballistic targets that cheaper short-range air-defense weapons cannot always address.

This capability also explains why interceptor shortages have direct battlefield consequences. A Patriot battery can remain operational but become less effective if its available missile inventory falls too low to sustain repeated engagements. Large ballistic-missile salvos can also require defenders to fire more than one interceptor against a target, further increasing consumption during intensive attacks.

Lockheed Martin is additionally preparing PAC-3 ACE, which Tenney described as a lower-cost interceptor within the PAC-3 family. The company intends to expand capacity across both missile variants, although PAC-3 ACE remains a developing capability and should not be considered an operational replacement for PAC-3 MSE.

Producing PAC-3 components or complete interceptors in allied countries could eventually increase output while making the supply chain more geographically resilient. Additional qualified factories and suppliers could reduce dependence on a limited number of U.S. production sites, but international production would still require certification, technology-transfer arrangements, security approvals and expansion of specialized component supply chains.

Ukraine has an obvious interest in such an arrangement, particularly as it seeks both additional Patriot missiles and greater domestic defense-production capacity. The Kyiv Post report notes recent Ukrainian statements about political approval to pursue Patriot production, but Lockheed Martin has not confirmed that Ukraine is one of the countries involved in its current PAC-3 negotiations. Ukraine has not announced a PAC-3 production agreement.

The strategic importance of the production expansion therefore extends beyond the Patriot system itself. Ukraine’s continuing need for ballistic-missile defense, high interceptor expenditure in the Middle East linked to the conflict with Iran, U.S. replenishment requirements, and growing allied demand are all pressuring the same industrial base at the same time.

If Lockheed Martin converts its overseas negotiations into manufacturing agreements while U.S. capacity rises toward 2,000 Patriot PAC-3 MSE interceptors annually, the company could significantly increase both the volume and resilience of the global Patriot missile supply chain. Until those investments translate into actual production, however, the availability of advanced interceptors will remain a critical factor in how long the United States and its allies can sustain high-intensity missile-defense operations across several theaters simultaneously.

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Written by Alain Servaes – Chief Editor, Army Recognition Group
Alain Servaes is a former infantry non-commissioned officer and the founder of Army Recognition. With over 20 years in defense journalism, he provides expert analysis on military equipment, NATO operations, and the global defense industry.