US strikes $58.6 billion Patriot missile deal amid rising stockpile concerns

The US Department of Defense has signed a $58.6 billion contract with Lockheed Martin for Patriot interceptors, aiming to replenish its depleted inventory due to conflicts in Ukraine and with Iran, and to prepare for potential conflict with China. This multiyear agreement, covering 2026-2032, seeks to increase production from 600 to 2,000 interceptors annually, requiring significant investment and expansion from Lockheed Martin and its suppliers. The deal, which includes over 10,000 interceptors, is also expected to slightly reduce the unit cost, currently around $4 million each. Additionally, the Pentagon has ordered older PAC-2 interceptors from Raytheon to free up advanced PAC-3 systems for ballistic missile defense, as Ukraine faces challenges defending against Russian attacks due to halted US deliveries.