Boeing Component Shortage Delays US-Japan Production of Patriot Missiles for Ukraine

A critical component shortage from Boeing is delaying the production of Patriot air defense missiles used by Ukraine against Russian attacks. The United States and Japan aim to ramp up production, but manufacturing challenges persist.

Boeing Component Shortage Stalls Crucial Patriot Missile Production, Impacting US-Japan Support for Ukraine

Four sources have reported that a shortage of a critical component manufactured by Boeing is causing a delay in the production of Patriot air defense missiles. Ukraine uses these missiles to defend against Russian attacks. The United States is utilizing Japanese factories to increase production.

Two Japanese government officials and two industry sources informed Reuters that Mitsubishi Heavy Industries (7011.T), MHI) currently produces approximately 30 PAC-3 missiles annually under a license from defense contractor Lockheed Martin (LMT.N) and has the potential to increase this number to approximately 60.

A person familiar with the program stated that the United States is eager to increase production from approximately 500 units annually to over 750 units on a global scale as soon as feasible. However, officials and industry sources have stated that Japan will only be able to expand without providing additional missile seekers, who will serve as their guidance during the final phases of flight.

"It could take several years before MHI is able to raise output," stated one of the industry sources, who, like the others, deferred to be identified due to their lack of authorization to address the media.

The production problem in Japan illustrates the difficulties Washington encounters in integrating industrial assistance from its global allies into its intricate supply chains.

Boeing initiated the expansion of its seeker factory in the United States last year to increase production by 30%. However, the additional lines will not be operational until 2027. The company did not disclose the number of units manufactured last year; however, it did announce that it had recently delivered its 5,000th unit.

A Boeing representative directed inquiries to Lockheed Martin, the interceptor's principal contractor.

Lockheed Martin to Boost US Patriot Interceptor Production Amid US-Japan Efforts to Aid Ukraine

Lockheed Martin has announced that it will increase the number of Patriot interceptors produced in the United States from 500 to 650 by 2027. Each unit is priced at approximately $4 million.

MHI would be obligated to construct additional capacity to increase annual PAC-3 production in Japan beyond 60, even if there are sufficient seekers.

Japan's government announced its intention to provide financial assistance to defense companies that desire to increase production in its 2022 plan to double military expenditures. Nevertheless, these subsidies apply exclusively to equipment intended for the country's Self-Defense Forces and not for export.

According to one of the Japanese government sources, the United States or MHI would be required to fund a new PAC-3 factory, which could cost tens of millions of dollars or more.

"The Indo-Pacific is a large area of focus for the U.S. and our allies and strategically postured capabilities in the region are critical to support deterrence and maintain readiness," Lockheed Martin stated in an email. The company directed inquiries regarding PAC-3 production in Japan to the Japanese and U.S. governments and MHI.

The Ministry of Defense of Japan declined to respond. MHI refused to answer.

According to a U.S. defense official, a $4.5 billion contract signed in June with the U.S. Army, the Patriot system's primary customer, signaled a production ramp-up for both missiles and seekers.

This month, the United States and Japan's foreign and defense ministers are scheduled to convene in Tokyo to discuss enhancing industrial cooperation in the defense sector. The Patriot initiative is considered a critical component of that endeavor.

Supply chain constraints complicate U.S. efforts to meet Ukraine's demand for munitions, such as air defense systems that can thwart Russian attacks, despite the assistance of allies.

In July, a Russian missile struck a children's hospital, resulting in the deaths of at least 41 civilians, in the deadliest surge of air strikes in months.

Japan's military export regulations were relaxed in December 2023 to facilitate the replenishment of U.S. Patriot missile inventories that had been utilized to assist Ukraine.

Rahm Emanuel, the U.S. Ambassador to Japan, has advocated for establishing more robust military-industrial relationships with Japan to alleviate the burden on U.S. defense contractors. He referred to this decision as "historic."

In April, U.S. President Joe Biden and Japanese Prime Minister Fumio Kishida reached an agreement to enhance their collaboration in the defense industry.

Emanuel characterized a diminished U.S. military-industrial complex as a "weak link" exposed by the Ukraine war and the Middle East conflict in an opinion piece published by the Wall Street Journal two months after that meeting.