• The US Navy’s SM-3 has been a key interceptor in defending Israel against Iranian attacks this year.
• SM-3s are expensive, between $10 million and $30 million per missile, and procurement plans are weak.
• The Standard series of missiles could be crucial in a war against China.

One of the US Navy’s best ballistic missile interceptors, the Standard Missile-3, underwent training in the Middle East this year, eliminating Iranian missiles heading towards Israel.

These commitments did not come cheap, however. The SM-3 comes with a hefty price tag, nearly $30 million for the high end and nearly $10 million for the low end. This represents a high cost per intercept, especially if multiple interceptors are fired for each target.

In a world of fixed budgets, this cost raises questions about sustainability, both in the moment and in a high-level fight. Archer Macy, a retired Navy admiral and missile defense expert, told Business Insider that it’s definitely “a problem” because “you have a limited amount of money that’s appropriated by Congress.” So either Congress has to provide more money or Congress has to provide more money. The Navy needs to stop buying anything else.”

That high cost could mean less money for ships, training or any number of other things the Navy needs. It could also limit the availability of the interceptors if the Navy cuts funding for the procurement.

Currently, there is concern that the Navy is not purchasing enough of these interceptors to prepare for future threats, such as those from China’s formidable missile force.

US Navy warships first used the SM-3 to protect Israel from Iran’s unprecedented attack in mid-April, which included a mix of more than 300 missiles and drones. It was then shot a second time during the massive Iranian barrage in early October, during which Tehran launched more than 180 ballistic missiles at Israel.

In both cases, the SM-3 “showed its value in spades,” Tom Karako, missile defense project director at the Center for Strategic and International Studies, told BI.

The Navy said an unknown number of interceptors successfully attacked Iranian missiles.

After the April Iranian attack, Navy Secretary Carlos Del Toro told lawmakers that maritime service needs more SM-3s to counter potential future threats in the Indo-Pacific, such as China.

“I sincerely believe that SM-3s will be needed in greater numbers in the future,” Del Toro said. “I think given the future threat and our deterrence mission in the Indo-Pacific, we will need more SM-3s in the future.”

Why is the SM-3 so expensive?

The SM-3 is an interceptor manufactured by RTX and, for the new Block IIA variant, Mitsubishi Heavy Industries, and is a component of the Navy’s highly advanced Aegis combat system.

The weapon uses a kinetic kill vehicle to destroy short- and medium-range ballistic missiles during their mid-flight phase. The most recent variant has demonstrated destructive capability against intercontinental ballistic missiles.

Lt. Cmdr. Jason Tross, a spokesman for US Naval Forces Europe, told BI that the SM-3 “provides the world’s best deterrent” against medium-range ballistic missiles.

There are several variants of the SM-3. The SM-3 Block IIA costs just under $28 million, while the Block IB exceeds $9 million.

One reason for the high costs is that to procure the microchips, sensor arrays, and other technologies specific to these missiles, the Navy must rely only on contractors who have already built the materials needed for the missiles. realization of the designs, many of which are older and involve some custom technology, said Bryan Clark, a former naval officer and senior fellow at the Hudson Institute.

The industrial process, coupled with the missile’s exquisite ability to intercept ballistic missiles, increases the cost of the interceptor.

RTX, the primary manufacturer of the missile, did not respond to Business Insider’s requests for comment.

Analysts said the Navy needs the weapons, regardless of the cost, if it is to prepare for a full-scale conflict, adding that recent spending and plans for the arsenal are troubling.

The proposed defense budget for fiscal year 2025 reduced the purchase of SM-3 IBs over the next five years from 153 to zero, in an effort that saved just under $2 billion. This leaves only 12 SM-3 IIAs produced each year for the next five years. Analysts and Navy officials say that’s not enough.

Karako said purchasing more interceptors would reduce the price per missile. “It’s like everything else: You buy the absolute minimum sustain rate, then they’re going to be more expensive. You buy more and mass produce them, then the cost can go down.”

A potentially massive missile fight in the Pacific

In a war with China, the Navy could find itself facing China’s Rocket Force, the crown jewel of its military, which has seen exponential growth in its missile stockpiles, launchers and capabilities in recent years, despite the upheavals and corruption. scandals.

Against Chinese anti-ship ballistic missiles and other threats, U.S. warships would need a full arsenal of SM-3s. and other interceptors in the standard missile family, such as the SM-2 and SM-6, both the Navy spent during its ongoing campaign against the Houthis.

The Navy wants to increase production of the SM-6, and the newest variant is designed for more effective cruise, ballistic, and potentially hypersonic missile defense. These interceptors cost around $4 million per unit.

“The SM-3 is not the only answer,” said Macy, nonresident senior associate of the Center for Strategic and International Studies’ missile defense project. The Navy must balance its priorities, but analysts and service leaders both recognize the need for a larger stockpile of these high-end interceptors.

“To accomplish these more difficult tasks, it just costs money,” Macy said, explaining that the Navy must pay high costs if it wants to be ready for the type of warfare these missiles were designed for.

For now, the SM-3’s most likely adversary is Iranian ballistic missiles, given the ongoing conflict in the Middle East and high tensions between Tehran and Israel. However, the United States is closely monitors China’s growing arsenal as the threat of combat in the Pacific looms.

“The SM-3 missile remains ‘mission ready’ to deter Iran or any other state actor seeking to use ballistic missiles in a terrorist campaign,” Tross, the Navy spokesman, said.