Lockheed Martin (NYSE: LMT) and Rheinmetall have signed a memorandum of understanding to establish co-production of ATACMS missiles in Europe, announced during the NATO Summit Defense Industry Forum. The agreement, backed by both the U.S. and German governments, lays the groundwork for a joint venture that would become the first European center of excellence for manufacturing, integrating, and distributing ATACMS across NATO and allied forces.
The planned production site is Rheinmetall’s Unterluess facility in Germany, a location with more than 125 years of history and roughly 4,000 employees. Unterluess already handles weapon systems and ammunition production along with tracked-vehicle development and maintenance, and it holds the distinction of being Europe’s largest privately owned firing range. The site recently brought a modern artillery ammunition plant online, and a rocket motor factory is nearing completion there, with rocket motor and guided missile component production slated to start in 2027.
Lockheed Martin International president Jay Pitman described the deal as a major moment for European security and industrial cooperation, framing it as a pairing of Lockheed’s missile expertise with Rheinmetall’s manufacturing capability to get proven systems to allies more quickly. Dennis Goege, Lockheed Martin’s chief executive for Europe, added that the move builds industrial value in Germany while expanding capacity to meet rising security needs across NATO.
Rheinmetall CEO Armin Papperger framed the partnership as central to strengthening Germany’s and Europe’s defense capacity and building greater autonomy in defense policy, noting that Rheinmetall will operate what would become the only ATACMS guided missile production facility outside the United States.
Lockheed Martin will keep running its existing ATACMS line in Camden, Arkansas, throughout the transition given ongoing global demand for the system. The company has operated in the European defense market for more than 75 years, and this MOU adds to a broader push toward deeper co-production relationships with European industry as the continent works to build up localized munitions capacity amid sustained security pressures on NATO’s eastern and southern flanks.
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