Industrial Base Alpha

Anduril unveils Steelfin interceptor at one-third PAC-3 MSE cost

•1 min read•Analysis
Mentioned:Anduril

Anduril unveiled Steelfin, a modular interceptor priced at one-third the cost of the Patriot's PAC-3 MSE missile. The company is competing in the Army's low-cost interceptor program and potentially the Future Interceptor program, with plans to reach full-rate production by end-2028 or early-2029.

What's happening

  • Anduril unveiled Steelfin, a modular interceptor designed to cost approximately one-third of PAC-3 MSE missiles.
  • The interceptor can fly with different rocket motors, seekers and launch from multiple platforms including PAC-3, CAML and Typhoon systems.
  • Anduril was selected to move forward with testing and demonstrations in the Army's xTech Apex Intercept competition for low-cost interceptors.
  • Full-rate production is expected by end-2028 or early-2029 at Arsenal-1 in Columbus, Ohio, targeting thousands to hundreds of thousands annually.

Why it matters

  • Steelfin addresses Army concern that legacy interceptors lack scalability to match the volume of evolving threats including ballistic missiles, cruise missiles and hypersonic weapons.
  • Modularity reduces cost and production complexity by enabling configuration with different seekers and rocket motors from multiple suppliers.
  • Production volume of thousands to hundreds of thousands annually could substantially increase air defense capacity across U.S. and allied forces.
  • One-third cost enables higher procurement quantities and distribution across more platforms than current PAC-3 MSE inventory allows.

Going deeper

  • Anduril declined to confirm selection for the Army's Future Interceptor program but noted Steelfin fits the seven to ten inch terminal storage and ten to thirteen inch booster specifications.
  • Steelfin design accommodates integration with Anduril internal rocket motor systems and external suppliers, providing flexibility as motor technology advances.
  • Final integration will occur at Arsenal-1 with a handful of partners handling sub-assembly production, distributing manufacturing risk.

The fine print

  • Anduril's selection for the Army's xTech Apex Intercept competition does not guarantee contract award or production funding.
  • Full-rate production timeline of end-2028 or early-2029 depends on program milestones, testing results and budget allocation decisions.
Source: Breaking Defense · Oct 12, 2026 · Drafted with Claude, reviewed by Industrial Base Alpha.

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