Lockheed Martin, Rheinmetall Plan First ATACMS Missile Production in Germany

Lockheed Martin and Germany's Rheinmetall have signed a memorandum of understanding (MoU) to jointly produce ATACMS missiles in Germany, marking the first time the U.S.-made short-range ballistic missile would be manufactured outside the United States.

The agreement, announced on Tuesday, has the backing of both the U.S. and German governments and represents a major step toward strengthening Europe's defense manufacturing capabilities. The companies said the MoU lays the foundation for a future joint venture that would establish a European hub for the production, integration, and distribution of ATACMS missiles to NATO members and allied nations.

Rheinmetall Chief Executive Officer Armin Papperger said the missiles will be produced at the company's artillery manufacturing facility in Unterluess, northern Germany. The project is expected to enhance Europe's ability to supply advanced precision-guided weapons while reducing dependence on overseas production.

The memorandum was signed during the NATO Industry Forum held alongside the alliance's summit in Ankara. The initiative reflects growing cooperation between the United States and its European allies as they seek to expand defense industrial capacity in response to rising global security challenges.

NATO members have accelerated efforts to increase weapons production after years of depleted stockpiles caused by sustained military support for Ukraine and heightened instability in the Middle East. Expanding local manufacturing has become a strategic priority as governments aim to improve supply chain resilience, shorten delivery times, and strengthen collective defense readiness.

If finalized, the Lockheed Martin-Rheinmetall partnership would create a key European production center for ATACMS missiles, supporting NATO's long-term defense objectives and improving access to advanced missile systems for allied countries. The agreement also underscores closer transatlantic defense cooperation as members invest in boosting military preparedness amid an increasingly uncertain global security environment.