The US Missile Defense Agency (MDA) has awarded X-Bow Systems a $10.9 million contract to develop and flight-test its Low-Cost Interceptor, aimed at providing an affordable defense against ballistic, cruise, and hypersonic threats.
X-Bow plans to manufacture both the interceptor and its solid rocket motor (SRM) internally, a strategy expected to lower production costs, reduce dependence on outside suppliers, and minimize potential supply chain disruptions.
The contract, awarded through the MDA’s Rapid Response Small Launcher Technology (R2SLT) program, requires the company to design, develop, and demonstrate a high-performance SRM by July 2028.
Supporting the MDA’s broader Low-Cost Interceptor initiative, the program targets interceptor costs of up to $750,000 per unit, significantly below the estimated $4 million cost of a Patriot PAC-3 interceptor.
In-House SRM Manufacturing
X-Bow’s cost-reduction strategy centers on its ability to internally develop and produce the interceptor’s airframe, SRM, and propellant. The New Mexico-based company uses an additive-manufacturing process for solid propellants, which it says can shorten SRM development timelines from months or years to just days.
The company has also introduced an interceptor designed to defeat Group 3 drones, including targets capable of supersonic speeds, with a reported manufacturing cost of less than $100,000 per unit.
Expanding US SRM Capacity
Beyond interceptor development, the contract is intended to strengthen and diversify the US solid rocket motor industrial base. The Department of Defense has identified the sector as heavily concentrated among a small number of suppliers.
Northrop Grumman and Aerojet Rocketdyne, now part of L3Harris, have traditionally dominated the US SRM market for missiles and interceptors. The Pentagon is therefore seeking additional manufacturers and production capacity to improve supply resilience and support future missile defense requirements.
