Anduril Launches Steelfin Interceptor to Cut Patriot Missile Costs by Two-Thirds

Key points

• Anduril's Steelfin interceptor is priced at approximately one-third the cost of the existing PAC-3 MSE missile.
• The system is modular, allowing for different rocket motors, seekers, and launch platforms, including PAC-3, CAML, and Typhoon systems.
• Executives stated the interceptor can be reconfigured to defeat low-cost threats like Iranian Shahed drones as well as advanced ballistic and hypersonic weapons.
• Anduril is competing in the Army's low-cost interceptor program following the xTech Apex Intercept competition.
• The company expects to reach full-rate production by the end of 2028 or early 2029, with annual production targets ranging from multiple thousands to hundreds of thousands of units.
• Sub-assemblies will be built at Anduril's Arsenal-1 facility in Ohio, with final integration handled by a handful of partners.

Background

This development occurs amid a broader push for affordable missile defense solutions. In early October 2026, Lockheed Martin unveiled the PAC-3 Edge, a next-generation interceptor for the Army's Future Interceptor program, which aims to replace the PAC-3 MSE. Lockheed's new missile features increased range and seeker sensitivity but is priced similarly to the current system. Meanwhile, global demand for interceptors has surged due to conflicts in Ukraine and the Middle East, straining US stockpiles. Other companies, such as Covenant, have also introduced cheaper alternatives for long-range strikes, highlighting a growing industry trend toward scalable and cost-effective defense technologies.

Why it matters

The introduction of the Steelfin addresses a critical gap in US missile defense capabilities: the need for affordable, high-volume interceptors to counter the increasing threat of low-cost drones and advanced missiles. By offering a modular system at a fraction of the cost of current interceptors, Anduril aims to provide the US military and its allies with a scalable solution that can match the volume of incoming threats. This could significantly impact future defense procurement strategies and help alleviate the strain on existing stockpiles caused by ongoing conflicts.

What to watch

Anduril plans to begin full-rate production of the Steelfin by late 2028 or early 2029. The company is currently competing in the Army's low-cost interceptor program and is positioning the Steelfin as a potential candidate for the Future Interceptor program. The next steps will likely involve further testing and demonstrations, as well as potential contract awards that will determine the scale of production and integration into existing defense systems.