Key facts
- Lockheed Martin and Rheinmetall will jointly produce ATACMS missiles in Germany.
- This is the first time ATACMS missiles will be manufactured outside the United States.
- The venture aims to establish a European hub for missile production, integration, and distribution for NATO members and allies.
- Production will take place at Rheinmetall's artillery plant in Unterluess, Germany.
- The agreement is supported by the U.S. and German governments.
U.S. defense contractor Lockheed Martin and German industrial group Rheinmetall have signed a memorandum of understanding to jointly produce Army Tactical Missile System (ATACMS) missiles in Germany. This agreement marks the first time the short-range ballistic missile will be manufactured outside the United States.
The joint venture, which is backed by the U.S. and German governments, aims to establish a European hub for the production, integration, and distribution of ATACMS missiles for NATO members and allied nations. Rheinmetall CEO Armin Papperger stated that the missiles will be manufactured at Rheinmetall's artillery plant in Unterluess, northern Germany.
This strategic move, signed at a NATO Industry Forum, is intended to bolster European defense industrial capacity and replenish weapons stockpiles that have been strained by ongoing conflicts in Ukraine and the Middle East. Rheinmetall expects to hold a 60% stake in the joint venture, with production lines potentially ready within 12-13 months, motors rolling out in 2026, and full missile assembly by 2027. The facility could produce up to 10,000 missiles and rocket motors annually, with potential annual revenue reaching approximately €5 billion.
Lockheed Martin is currently phasing out ATACMS production in the U.S. as it ramps up production of the next-generation Precision Strike Missile. The company has indicated that remaining U.S. orders may be shifted to the new European plant, generating initial turnover of €1–2 billion. Both partners plan full vertical integration to shorten supply chains, and intellectual property rights for new designs will remain with the European side.