Europe Seeks Cheaper Missiles to Build Mass Capacity

European militaries and defense startups are racing to develop cheaper missiles and interceptors. Recent conflicts exposed the limits of small inventories, driving demand for scalable manufacturing to counter drones and cruise missiles.

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Skyhammers are displayed at Cambridge Aerospace's manufacturing facility in Cambridge, Britain, July 1, 2026. Cambridge Aerospace/Handout via REUTERS

European defense forces are exploring lower-cost missiles and interceptors to counter high-end inventory strains, committing €250 million ($288 million) to new procurement deals. The shift comes as conflicts in Ukraine and the Middle East drain sophisticated stockpiles faster than governments can replenish them. The re-evaluation forces military planners to reconsider peacetime production models.

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