US clears potential $5B Patriot missile sale for Germany, $738M in Reaper drones for Italy

WASHINGTON — The US State Department today cleared the way for Germany, Italy and Denmark to receive a host of US-made weapons, including a monster $5 billion potential sale of some 600 Patriot missiles and related equipment to Berlin, according to the Pentagon’s Defense Security Cooperation Agency (DSCA).

Made by Lockheed Martin and known as PAC-3 Missile Segment Enhancement (MSE), the upgraded interceptors are in high demand as the war in Ukraine underscores the value of air defenses and as Western countries seek to replenish their own stocks. Germany previously has supplied Ukraine with Patriot defense systems as well as missiles.

Lockheed is ramping up production of the missiles, whereas RTX subsidiary Raytheon is taking similar steps for the system’s launcher, radar and other ground systems. Boeing contributes the PAC-3’s seeker and is on track for record production of the component, though Reuters previously reported that demand for the seeker is currently outstripping supply.

DSCA noted in its release that Germany “typically requests offsets,” or an industrial arrangement that would provide domestic benefits for Berlin. “Any offset agreement will be defined in negotiations,” the DSCA release says, though it does not say when deliveries are expected to start.

Separately, the State Department has also greenlit a sale of six Block 5 MQ-9 Reapers made by General Atomics for Italy, along with ground control stations and other associated subsystems. The sale would expand the country’s existing Reaper inventory, as Rome already operates MQ-9s. The deal is estimated at $738 million, according to DSCA, which similarly did not share an expected delivery date. 

Rounding out today’s European sales is Denmark, which was given the go-ahead by Foggy Bottom to buy 5,832 M1156 Precision Guidance Kits for $85 million. The kits provide GPS guidance, converting conventional 155 mm artillery shells into “smart” weapons. 

Northrop Grumman is the prime contractor for the kits, according to the DSCA release, which notes that Copenhagen “typically requests offsets” as well. It’s not clear when deliveries would begin.

Each of the announcements, issued in the form of a congressional notification from DSCA, is not the final step in an arms deal. Quantities and dollar totals often shift during negotiations. And today’s notification technically tees up an opportunity for lawmakers to block the deal within a 30-day period, though such a step would be unlikely, particularly since the customers are close American allies.

The arms deals additionally highlight continued record-breaking growth of US weapon sales: On August 8, the Pentagon announced that foreign military sales for fiscal 2024 had already topped $80 billion and could surpass $100 billion by the end of the year. FY23 sales, by comparison, previously held the record of $66.3 billion.