# Lockheed weighs Diehl as German partner for PAC-3 production, Defense News reports
A Lockheed executive said Ukraine might start with something like the cheaper ACE, possibly built in nearby countries. The report names no buyer, funding or timeline.
Published 2026-10-13 by TGOs. Canonical: https://tgos.io/news/2026/10/13/lockheed-weighs-diehl-as-german-partner-for-pac-3/
Lockheed Martin is considering new industry partners to build PAC-3 Patriot interceptors in Europe, which could also help supply Ukraine, Defense News reported Tuesday.[1] In Germany, the company is weighing Diehl Defence, Jason Reynolds, general manager of Lockheed's integrated air and missile defense division, told the outlet at the Association of the U.S. Army convention.[1] "If we were to go forward with exploring any kind of production in Germany, we would likely do that with a company like Diehl," he said.[1] A Diehl spokesperson confirmed consultations are ongoing, according to Defense News.[1]
The pairing has a paper trail. Reynolds signed a memorandum of understanding with Diehl at the same convention a year earlier to explore expanding the PAC-3 Missile Segment Enhancement (MSE) supply chain.[2] German leaders have offered to host PAC-3 production, and Raytheon and MBDA already make the PAC-2 line there, Defense News reported.[1]
Reynolds said Lockheed is "absolutely willing to talk to Ukraine," adding that "it might be something like an ACE, as opposed to an MSE, that we would start with."[1] Lockheed announced development of the ACE over the summer, billing it as a cheaper option against relatively simple threats at half the cost of an MSE, Defense News reported.[1] Because a plant inside Ukraine risks Russian attack, the company is considering production in nearby safe countries, the outlet reported.[1]
## Why it matters
The U.S. government has the final say on where Patriot equipment is made abroad, Defense News reported. "We at Lockheed don’t have the authority to just build factories wherever we want," Reynolds said.[1] U.S. officials are still expected to decide on the production license Ukrainian leaders said they were promised, which could mean Raytheon's PAC-2 or Lockheed's PAC-3, according to the outlet.[1]
*Clarification, November 4, 2026:* We updated our record of the date on the Defense News report this brief cites. The report is dated Oct. 13, 2026, and the brief is unchanged.
## Sources
1. Defense News: Lockheed eyes fresh PAC-3 interceptor production options for Ukraine, Europe (Oct. 13, 2026)
2. Lockheed Martin: Lockheed Martin and Diehl Defence to Expand PAC-3 MSE Global Supply Chain (Oct. 14, 2025)