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Defense Startups Target Interceptor Market Amid Rising Threats

Financial Times Companies •
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Interceptor demand surges as Gulf states scramble to counter Iranian missile and drone threats. Lockheed Martin, Raytheon, and L3Harris are ramping production, with Lockheed boosting interceptor output 12-fold over seven years. Startups like Cambridge Aerospace are disrupting the market by in-house manufacturing, cutting costs via self-produced solid rocket motors and chemicals. DragonFire laser systems, developed by UK firms, offer affordable defense at £10 per shot, aiming to shift cost dynamics. Supply chain bottlenecks persist, with critical components like ammonium perchlorate in short supply, slowing expansion despite Pentagon funding.