Lockheed, Germany’s Diehl sign PAC-3 MSE pact to boost supply chain resilience

AUSA 2025 — Lockheed Martin and German manufacturer Diehl Defense signed a pact today for “collaboration opportunities” to expand the Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement (MSE) interceptor global supply chain.

The Memorandum of Understanding, inked here on the floor of the annual AUSA exposition, puts in motion a push to build out greater supply chain resilience for the in-demand weapon system, which is used for taking out ballistic and cruise missiles as well as neutralizing hypersonic threats.

It is “essential” to have a “dual source, maybe a third source … supply chain management capability in order to ramp up quickly … to bring more material in the market or in Europe supporting Ukrainian civilians for the fight against the Russians,” Torsten Cook, senior vice president for ground-based air defense at Diehl, told Breaking Defense. 

The MoU with Lockheed Martin is a “first step” to delivering on such an ambition, he shared, stressing that sourcing “European components” for PAC-3 MSE will be prioritized.

Cook also shared that Lockheed could “participate” on a “local footprint in Germany” by investing in the supply of thermal batteries. Diehl subsidiary Eagle Pitcher supplies the equipment on PAC-3 and a host of weapon systems including Stinger, IRIS-T and the Evolved SeaSparrow Missile (ESSM), according to company literature [PDF]. 

The US and Germany belong to a group of 17 partner nations that have selected the advanced Patriot interceptor, according to a Lockheed Martin statement.

As Breaking Defense previously reported, the US giant secured a $9.8 billion award for the production of nearly 2,000 PAC-3 MSE interceptors and supporting hardware in September.

In a related development, Boeing announced today that it has been awarded multiyear contracts, valued at an estimated $2.7 billion for additional PAC-3 seekers. More than 3,000 seekers, based on a production rate of 750 units annually through 2030, will be manufactured as a result, the company shared in a statement.

“Boeing is working closely with prime contractor Lockheed Martin and the U.S. Army to further increase production rates and meet new targets for the PAC‑3 interceptor,” added Boeing. “Scaling seeker output is critical to ensuring the Patriot system can continue to defend service members, civilians and critical infrastructure worldwide as threats proliferate.”