In the US, Lockheed Martin awards L3Harris a $4.7 billion PAC-3 MSE contract
In the United States, Lockheed Martin has awarded L3Harris Technologies a $4.7 billion contract without finalized terms to manufacture propulsion system components for the PAC-3 Missile Segment Enhancement (MSE) interceptor missile. As Defense News reports, the contract is designed for seven years and is L3Harris's largest order for PAC-3 propulsion systems.
Components for the interceptor
L3Harris is to manufacture dual-pulse solid rocket motors, missile attitude control system motors, and a fragmentation explosive device called a lethality enhancer.
In January, Lockheed Martin announced a seven-year framework agreement to increase annual PAC-3 interceptor production from 600 to 2,000 units. In June, L3Harris began constructing two new facilities in Arkansas to expand production capacity for US Army PAC-3 propulsion systems. Both plants are expected to begin operating in 2027.
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Growing demand
The production increase is taking place amid growing demand for advanced air defense missiles due to the wars in Iran and Ukraine. PAC-3 interceptor missiles are already used in the Patriot air defense system, and in spring the US Navy announced its intention to integrate PAC-3 MSE into the Aegis combat system for the first time.
According to an August report by the Washington-based think tank CSIS, US Army and Navy requests for PAC-3 MSE rose by 839% — from 341 missiles in fiscal year 2026 to 3,203 in 2027. Experts also warn that even the planned production increase will not be able to meet the current demand of the US military. The cost of one PAC-3 MSE is estimated at about $4 million, while an Iranian Shahed drone costs about $35,000.
