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Defense Innovation

US Seeks Cheap Interceptors vs Iran Drones

American startup Powerus opens UAE factory producing thousands of $5,000 interceptors monthly, addressing cost imbalance where Iran launches cheap drones while US spends hundreds of thousands per missile

President Trump

A significant challenge has emerged in confronting Iranian aerial threats: the economic imbalance of defense. While Iran deploys drones costing mere thousands of dollars, the United States has relied on interceptor missiles priced at hundreds of thousands each, creating an unsustainable equation that has led to reported shortages in American missile stockpiles.

A potential solution may now be taking shape. According to The New York Times, American startup company Powerus has begun operating a manufacturing facility in the United Arab Emirates that assembles dozens of drone interceptors daily at dramatically reduced costs. The initiative aims to address the growing global shortage of interception systems amid widespread Iranian drone attacks across the region.

The company currently produces approximately 3,000 interceptors monthly across various facilities and aims to reach production capacity of 15,000 units monthly by mid-2027. Its business model relies on partnerships with local manufacturers near conflict zones, significantly reducing costs through simplified component assembly.

"Production must sit close to where it's needed," explained Brett Velicovich, Powerus's chief operating officer. "When the world's largest defense contractor builds PAC-3 in collaboration with European manufacturers, this is the industry's admission of what the last four years have shown: you cannot supply a modern conflict from one continent or a single facility. Production must be positioned near where it's required."

The demand for affordable interceptors intensified following extensive Iranian attacks on the UAE involving hundreds of ballistic missiles and thousands of drones. Using expensive American-made interceptors against cheap drones created both an economic burden and depletion of available stockpiles, raising concerns about shortages that could constrain further military escalation in the Middle East.

Powerus's interceptor, called Guardian, is based on Ukrainian design and costs approximately $5,000. The system is designed to engage Shahed-type drones but is not intended for intercepting heavy ballistic missiles. Similar developments of autonomous interceptors in Ukraine have demonstrated that significant interception capabilities can be achieved at low cost.

Alongside its defense expansion, the company has signed deals with golf course operators through an investment firm connected to Donald Trump Jr. and Eric Trump. Powerus has added additional figures from the U.S. president's circle to its advisory board and reported new contracts for protecting infrastructure and oil facilities.

Michael Sinninsky, vice president of marketing and company co-founder, addressed the business connections: "We don't care about politics—we want to save lives. We appreciate the investments they made in an entity that invested in us."

The company was founded following Russia's 2022 invasion of Ukraine, after the entrepreneurs met while distributing humanitarian aid. Sinninsky recalled the beginning: "We saw up close the start of drone warfare. Our humanitarian supply warehouse was destroyed."

Defense experts note that lightweight interceptors do not fully replace heavy defense systems. Stacie Pettyjohn, senior researcher at the Center for a New American Security, stated: "They're a complement, not a substitute, for PAC-3."

Albert Vidal, researcher at the International Institute for Strategic Studies, observed: "The primary interest is independent capability. The UAE's response is: 'We'll continue buying as much as we can from the United States, but we'll also buy from other players and produce things domestically.'"

Pettyjohn added that demand for multi-layered defense systems is expected to grow as drone and missile models become more sophisticated: "They will move toward the types of barrages Russia throws at Ukraine. That's what we need to prepare to defend against."

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