US Defense Firms Develop Low-Cost Missiles After Iran Conflict

Major U.S. defense contractors are shifting production toward cheaper, more plentiful interceptors to address a cost imbalance exposed during the conflict with Iran. At the Space and Missile Defense Symposium in Huntsville, Alabama, Lockheed Martin Corp., Boeing Co., Northrop Grumman Corp., and RTX Corp. presented plans to replace expensive projectiles that cost over $4 million each with more affordable alternatives.

Lockheed Martin announced the Patriot ACE, a variant costing approximately $2 million. Boeing is developing an ultra low-cost seeker using commercial-grade parts to reduce component costs from 30% to 10% of a missile's total price. Northrop Grumman unveiled Raid Hunter, a 50mm guided gun-based system, while RTX is expanding its Coyote counter-drone missile and partnering with Voyager Technologies for cheaper propulsion. These efforts target the disparity between high-cost interceptors and Iranian Shahed drones, which can cost as little as $30,000.

While the United States Department of Defense has awarded contracts to smaller firms like Anduril Industries Inc. and Castelion Corp. to accelerate innovation, major contractors face longer timelines, with some systems not reaching production until after 2029. President Donald Trump has downplayed munitions shortages, claiming firms are producing weapons at unprecedented rates, though the Pentagon has requested emergency funding from Congress.