$750,000 Price Target: Pentagon Seeks Cheaper Interceptor Missiles

The Pentagon is looking for a cheaper way to counter ballistic and hypersonic threats, awarding New Mexico-based rocket maker X-Bow Systems an almost $11 million development contract.

Under the agreement, X-Bow must produce a prototype interceptor for the U.S. Defense Department and complete a demonstration flight by the end of 2027. The program aims to bring the cost of each launched missile below $750,000, roughly one-fifth the price of a Patriot interceptor.

The Missile Defense Agency initially sought companies able to “quickly demonstrate very low-cost, modular interceptors to counter ballistic and hypersonic threats.” The effort gained urgency after the United States was left with fewer than 1,000 Patriot interceptors and about 250 THAAD missiles following its conflict with Iran, the article says.

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America cannot outproduce today’s threats if it relies on yesterday’s supplier base. Our new production technology enables us to provide affordable interceptors and rocket motors to warfighters faster, and this contract is an opportunity to prove it.

A replacement Patriot missile costs about $3.9 million and takes years to produce. Only a small number of licensed manufacturers currently make it. X-Bow founder and chief executive Jason Hundley said the company’s production technology could provide affordable interceptors and rocket motors more quickly.

“We cannot outproduce today’s threats if we rely on yesterday’s supplier base,” Hundley said. MDA Director Lieutenant General Heath Collins said the agency was examining the propulsion system and other expensive interceptor components to find ways to reduce costs. Other U.S. government bodies are also pursuing solutions to the interceptor shortage, but the article says none is expected to become available before next year.

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We are looking at the propulsion system, we are looking at all the expensive parts of the interceptor to find opportunities to reduce the cost of every part as we move forward.