Why Laser Beams Are the Hottest New Tech in Defense

PodcastOdd LotsWayne SandersSep 4

The discussion examines how layered air defenses match expensive interceptors and emerging directed-energy systems to different threats, with cost mismatches driving demand for cheaper options. Lasers and high-powered microwaves may offer repeated engagements at a lower cost per shot, but power requirements, mobility, weather, and hypersonic threats limit their use. Supply-chain concerns also feature prominently, as China controls 85% to 90% of some critical-mineral chains and the United States seeks domestic capacity through MP Materials. The directed-energy market was described as worth $6 billion to $8 billion and potentially growing two to three times over the next decade as spending shifts toward procurement.

National Security Energy Security Supply Chains

Preview · 24 more points in the app

Read the Full Summary

Key Takeaways

The episode framed air defense as a layered architecture rather than a choice between legacy interceptors and directed energy: Arrow 2 and 3, PAC-3, and THAAD address longer-range or high-speed threats, while Iron Dome, lasers, microwaves, guns, electronic warfare, Coyote, Vampyr, and APKWS can address other threat categories. High-powered microwaves are better suited to broad effects against drone swarms, whereas lasers are designed for precise individual targets.

A central procurement problem is the cost mismatch between premium interceptors and inexpensive drones: commanders may need to use whatever protects their forces, but higher-level leaders may seek alternatives to a $4.1 million interceptor against a $30,000 drone. That economics is driving interest in low-cost, containerized munitions ordered in quantities of thousands or tens of thousands, alongside lower-cost directed-energy options.

Directed-energy weapons could provide repeated shots at a lower cost once adequate power infrastructure is available, but deployment is constrained by power generation, mobility, installation expense, and weather. Existing Stryker-mounted systems use about 50 kilowatts, a 5-kilowatt beam may be insufficient when disabling a drone requires 15 to 25 kilowatts, and fog or rain can disrupt laser propagation.

The episode presented Israel’s Iron Beam as a possible transition from decades of laser research to operational deployment: the system was described as a roughly 150-kilowatt test bed with potential operational data from engagements against Shahed-136 drones. That compares with about 50 kilowatts for the speaker’s system and illustrates why beam power and engagement conditions matter.

Directed energy is not positioned as a replacement for high-end missile defenses against fast or hypersonic threats; the guest cited Mach 5 weapons as a reason to retain PAC-3, SM-3, and SM-6 systems. The same constraints help explain plans to increase PAC-3 production from 620 to 2,000 interceptors annually and to quadruple THAAD production, even though THAAD interceptors cost roughly $12 million to $15 million each.

GEO-POLITICS

Threat-Matched Defense — Israel uses a layered air-defense architecture that matches systems to the incoming threat’s type and severity. Arrow 2 and 3 address longer-range missiles; David’s Sling and Iron Dome cover other layers, while Iron Beam, Vampyr, APKWS, and Coyote target lower-cost threats.

“So what it's done is it gives the commander options so that you don't always have to use your exquisite munitions. You don't have to bankrupt yourself to do it.”—

HELIOS Deployment — The Navy has a ship-based directed-energy platform called HELIOS on the USS Preble. The guest described it as a large ship-mounted weapon, not a handheld laser.

“Not not in the way that you're you're thinking. I mean, we have we have some areas like, you know, there's the Helios platform that's on the USS Preble…”—

Munition Complexity — Long-range precision munitions may require speed, maneuverable tail fins, target-specific payloads, and the ability to evade enemy air defenses. GPS-guided gravity bombs involve much simpler maneuvering after release.

“If you have long range precision munitions that we are firing offensively, same thing kind of applies…”—

TECHNOLOGY

Iron Beam Deployment — Directed-energy weapons have been in development for decades, but Israel’s Iron Beam project may mark a shift toward operational deployment.

“But at the same time, people have been talking about these forever. They've been in development for literally decades now…”—

Interceptor Cost Gap — The hosts argued that using million-dollar missile weapons against inexpensive drones creates a severe cost mismatch. They suggested lasers could replace some conventional munitions.

“But at the same time, we know that The US's ballistic missile supply has been dwindling because, you know, it doesn't really make a lot of sense to use like…”—

Defense Layers — Integrated air and missile defense combines high-end interceptors such as PAC-3 with high-energy lasers. The systems are complementary rather than interchangeable.

“It's okay, there's something called integrated air and missile defense. There's an entire program. There is a big difference between an exquisite munition interceptor like a PAC-three…”—

ECONOMY

Critical Minerals — Scaling laser-defense production depends on critical minerals such as terbium, dysprosium, and neodymium-iron-boron magnets. The MP Materials deal was presented as an effort to establish domestic U.S. production capacity.

“When you look at critical minerals across, there's terbium, like you mentioned, there's dysprosium. Dysprosium is another 1 that a lot of people use…”—

Directed Energy Basics

The hosts introduce Wayne Sanders and frame lasers and high-powered microwaves as long-developed technologies approaching practical deployment amid missile-stockpile concerns.

Wayne Sanders' Defense Lens

Sanders describes his military intelligence, cyber operations, Pentagon research, and Bloomberg Intelligence experience analyzing defense technologies, budgets, supply chains, and procurement.

Lasers Versus Microwaves

Lasers concentrate heat on one target, while high-powered microwaves spread effects across electronics and can address multiple drones simultaneously.

Power, Mobility, And Cost

Directed-energy systems require substantial power, creating size and mobility tradeoffs, but regenerative shots can expand magazines and reduce cost per engagement.

From Chemical Lasers To Strykers

Earlier chemical lasers proved destructive but were enormous and logistically intensive, while modern systems increasingly fit on ships and tactical vehicles.

Layered Air Defense Economics

Expensive interceptors remain essential against hypersonic threats, but cheaper guns, missiles, microwaves, and lasers help prevent defensive victories from becoming economic losses.

Critical Minerals And Capacity

China dominates key mineral supply chains, prompting U.S. domestic efforts such as MP Materials while dual-use demand complicates efforts to scale defense production.

Primes Versus Defense Startups

Large primes are expanding established interceptor production, while startups pursue the middle market for thousands of lower-cost containerized munitions and related systems.

AI And Human Control

Military AI is mainly being used to organize information and flag imagery, while human analysts and commanders retain responsibility for target identification and strike decisions.

Procurement And Iron Beam

The directed-energy market is moving from research toward procurement, with Iron Beam providing operational lessons while weather, power, and hypersonic speed remain constraints.

No Single Defense Solution

The hosts conclude that cheap drones expose costly force-planning assumptions and that lasers offer economic promise without eliminating installation, weather, or power challenges.