Pentagon awards X-Bow Systems $11 million to develop low-cost interceptor
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The U.S. Department of Defense awarded X-Bow Systems a contract worth nearly $11 million to develop a new anti-ballistic interceptor costing under $750,000 per shot. The award, under the Missile Defense Agency's Low-Cost Interceptor program, aims to expand the solid rocket motor industrial base beyond its current two-company duopoly. The program has gained urgency as U.S. Patriot interceptor stocks have fallen below 1,000 following the war with Iran.
Key Facts
- The Pentagon awarded X-Bow Systems a contract worth almost $11 million under the Missile Defense Agency's Low-Cost Interceptor program.
- The target cost per interceptor is under $750,000, roughly one-fifth the cost of a Patriot missile.
- The U.S. currently has fewer than 1,000 Patriot interceptors and about 250 THAAD rounds, with each Patriot replacement costing about $3.9 million.
- Northrop Grumman and L3Harris' Aerojet Rocketdyne hold a duopoly on domestic solid rocket motor production for interceptors.
- X-Bow Systems will use the phase 2 award to fund further motor development and a first flight test.
Contract Award
The Department of Defense awarded X-Bow Systems, a New Mexico-based rocket manufacturer, a contract worth almost $11 million. The award falls under the Missile Defense Agency's Rapid Response Small Launcher Technology program, which seeks interceptor designs costing under $750,000 per shot. X-Bow prints its solid rocket motors and propellant in-house and will use the phase 2 award to fund further motor development and a first flight test. X-Bow founder and CEO Jason Hundley said the company's manufacturing technology can deliver affordable interceptors and rocket motors faster.
Industrial Base Expansion
The contract aims to expand the solid rocket motor industrial base, which the DoD says is currently reliant on a duopoly of Northrop Grumman and L3Harris' Aerojet Rocketdyne. Production of the Patriot missile itself runs through Lockheed Martin and Raytheon, with Japan the only country ever licensed to build the missiles abroad. The program has taken on new urgency since the war with Iran left the U.S. with fewer than 1,000 Patriot interceptors and roughly 250 THAAD rounds. Each Patriot replacement costs roughly $3.9 million and takes years to build by a handful of licensed manufacturers facing almost no competition.
Broader Interceptor Shortage
Last year, the U.S. Air Force solicited industry for a counter-air missile under $500,000 that it wants built by the thousands each year. Allied countries dependent on Patriot stocks to protect their cities have begun working toward antiballistic capabilities at lower price points. MDA's Collins said the agency is examining propulsion and all expensive parts of an interceptor to drive down costs.
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Pentagon awards X-Bow Systems $11 million to develop low-cost interceptor



