US Military to Procure Fewer Patriot Missiles Due to Rising Costs

The US Army is expected to fall short of its procurement targets for Patriot air defense system missiles due to rising unit costs. The cost of PAC-3 MSE missiles has increased by more than 30% since 2022, which will reduce the number of missiles to be delivered in 2027. In the 2023 fiscal year, the cost of a single Patriot PAC-3 MSE missile was $3.825 million, while in the 2027 projections, this cost has risen to $4.988 million. The cost increase has also affected the 2025 orders. With the allocated budget, the initial plan was to procure 230 rounds of ammunition, but this number was reduced to 194 after the price update. Deliveries are expected to begin in September 2027. There has been a significant increase in the US demand for these missiles. In April 2025, the PAC-3 MSE procurement target was increased to approximately four times its original amount. However, the depletion of stockpiles continues to exert pressure. The existing ammunition was roughly halved during operations against Iran, and the replenishment process for stockpiles depleted by shipments to Ukraine since 2022 is ongoing. US military officials are exploring more economical alternatives in the face of high costs. The goal is for the new missiles under development to have a unit cost of less than $250,000.