Lockheed Martin, Rheinmetall advance ATACMS co-production in Europe

Lockheed Martin and Rheinmetall have signed a memorandum of understanding during the NATO Summit Defense Industry Forum to meet immediate demand for locally produced munitions in Europe, advancing a plan to co-produce ATACMS missiles on the continent. With support from the United States and German governments, the agreement moves the companies toward creating a joint venture that would establish the first European center of excellence for the manufacturing, integration and distribution of ATACMS across NATO and allied European forces.

“This partnership marks a watershed moment for European security and allied industrial cooperation. By combining Lockheed Martin’s unmatched missile expertise with Rheinmetall’s manufacturing excellence, we’ll deliver combat-proven capabilities faster and more efficiently to our allies,” said Jay Pitman, president, Lockheed Martin International.

“Bringing ATACMS co-production to Germany is a strong signal for Europe’s defense industry and for NATO’s long-term resilience. This partnership combines proven U.S. technology with European manufacturing strength, creating industrial value in Germany while expanding the capacity allies need to meet growing security demands,” said Dennis Goege, chief executive for Europe at Lockheed Martin.

Armin Papperger, CEO Rheinmetall AG, said: “Our aim is to strengthen the defence capabilities of Germany and Europe. Together with our friends at Lockheed Martin, we are now establishing the industrial base in Germany for modern defence systems, which are in great demand by the armed forces of Europe. By establishing ATACMS production at Rheinmetall’s Unterluess site, we are creating new capabilities for Germany and Europe, securing supplies for our customers and strengthening our autonomy in defence policy. We are grateful that Rheinmetall has been selected to set up and operate the world’s first and only production facility for ATACMS guided missiles outside the United States.”

The companies framed the arrangement as a way to build local capability, strengthen allied deterrence and generate economic benefits in Europe and the United States. ATACMS is described as having decades of combat employment, with a track record of operational effectiveness, precision and reliability in high-intensity conflicts. Amid strong global demand, Lockheed Martin will continue running its existing ATACMS production line in Camden, Arkansas, until the transition is complete.

Rheinmetall’s Unterluess complex, commissioned more than 125 years ago, is one of the company’s most significant sites, employing about 4,000 people. Its core activities include producing weapon systems and ammunition and developing, manufacturing and maintaining tracked vehicles. Unterluess hosts Europe’s largest privately owned firing range. The “Werk Niedersachsen” artillery ammunition facility entered operation last year, and a rocket motor factory is nearing completion, with production of rocket motors and guided-missile components planned to begin as early as 2027.

The agreement is presented as part of a broader push to deepen long-term co-production ties with European industry and customers, reinforcing commitments to defense and security partnerships across the region.