The U.S. State Department authorized Germany, Italy and Denmark on August 19 to acquire a variety of U.S.-made weapons, including a potential sale of about 600 Patriot missiles and related equipment to Berlin, worth up to five billion dollars, the Pentagon’s Defense Security Cooperation Agency (DSCA) reported. The missiles, manufactured by Lockheed Martin and known as PAC-3 Missile Segment Enhancement (MSE), are increasingly in demand, given the growing importance of air defenses, highlighted by the war in Ukraine and the need for Western countries to replenish their stockpiles. Germany has previously sent Patriot defense systems and missiles to Ukraine.
As Breaking Defense reports, Lockheed Martin is ramping up production of these missiles, while Raytheon, a subsidiary of RTX, is taking similar steps for the launcher, radar, and other ground systems. Boeing is contributing the PAC-3 seeker and is on track to hit a record level of production for this component, despite Reuters previously reporting that demand for the seeker is currently outpacing supply. The seeker provides guidance data for the PAC-3 missile system, which is designed to defend people and infrastructure from threats posed by tactical ballistic missiles, cruise missiles, and enemy aircraft.
The DSCA noted that Germany “typically requires offsets,” or industrial agreements that would provide national benefits to Berlin. “Any offset agreement will be finalized during negotiations,” the DSCA statement said, without specifying when deliveries would begin. In another deal, the State Department approved the sale of six Block 5 MQ-9 Reaper drones manufactured by General Atomics to Italy, along with ground control stations and other associated subsystems. The sale would expand Italy’s existing MQ-9 inventory, as Rome already operates these drones. The deal is valued at $738 million, but again no expected delivery date was given.
Additionally, Denmark has received approval from Foggy Bottom to purchase 5,832 M1156 precision guidance kits for $85 million. These kits provide GPS guidance, turning conventional 155mm artillery shells into “smart” weapons. Northrop Grumman is the prime contractor for these kits, and the DSCA release notes that Copenhagen “typically requires offsets” as well. It is unclear when deliveries will begin. Northrop Grumman has adopted commercial industry practices to produce software, firmware and sensor hardware, significantly reducing development time and speeding up deliveries.
The announcement, issued in the form of a notification to Congress by the DSCA, does not represent the final conclusion of an arms sales agreement. Quantities and economic values can change during negotiations. In addition, today’s notification technically offers lawmakers the opportunity to block the agreement within 30 days, although this is unlikely to happen, given that the customers are all close allies of the United States. In any case, today’s agreements reflect the continued record growth of arms sales in the United States: On August 8, the Pentagon announced that foreign military sales for fiscal year 2024 had already exceeded $80 billion and could reach over $100 billion by the end of the year. By comparison, sales for fiscal year 2023 had already reached a record $66.3 billion.
