Lockheed Martin and Rheinmetall outline Europe joint plan for ATACMS co-production

Lockheed Martin and Rheinmetall said they have signed a memorandum of understanding to advance a Europe-based co-production effort for ATACMS missiles, marking what the companies describe as a step toward establishing the first European “centre of excellence” for manufacturing, integration, and distribution of the guided missile across NATO and allied European forces.

The announcement came during the NATO Summit Defense Industry Forum in Türkiye. Lockheed Martin said the memorandum is backed by the United States and the German governments and is intended to address what it called immediate demand for locally produced munitions in Europe.

Under the arrangement, Rheinmetall would set up ATACMS missile production at its Unterluess site in Germany. Rheinmetall’s chief executive Armin Papperger said the company’s aim is to strengthen the defense capabilities of Germany and Europe and build an industrial base in Germany for modern defense systems that European armed forces need.

Lockheed Martin said the partnership combines its missile experience with Rheinmetall’s manufacturing capabilities, and it framed the move as a way to deliver combat-proven capabilities “faster and more efficiently” to allies. Jay Pitman, president of Lockheed Martin International, called it a “watershed moment” for European security and allied industrial cooperation.

The companies said Rheinmetall has been operating the Unterluess facility for decades, with approximately 4,000 employees. The site produces weapon systems and ammunition and also develops, manufactures, and maintains tracked vehicles. Rheinmetall described Unterluess as the largest privately owned firing range in Europe, and it pointed to the start-up of a modern artillery ammunition production operation called “Werk Niedersachsen” last year.

Rheinmetall said a rocket motor factory at Unterluess is nearing completion, and that production of rocket motors and guided missile components is scheduled to begin as early as 2027. Lockheed Martin added that it would continue operating its current ATACMS production line in Camden, Arkansas until the European transition is complete, while emphasizing that it expects significant global demand for ATACMS.

ATACMS, or the Army Tactical Missile System, is a guided missile designed for precision strike missions. In the companies’ account, its combat record underpins the industrial push, with Lockheed Martin citing operational effectiveness, precision, and mission reliability in high-intensity conflicts.

Beyond the missile factory plan, the memorandum is positioned as part of a broader effort to deepen long-term co-production ties between Lockheed Martin and European defense industry partners. Lockheed Martin said it has been a strategic partner to Europe’s defense and security for more than 75 years and that it intends to keep working with customers and partners across the region.

Still, the memorandum of understanding does not provide details on contract value, the ownership or investment structure of any joint venture, or the timeline for when ATACMS output in Germany would scale to specific production rates. The companies also did not disclose how integration and distribution would be organized across NATO and allied forces, beyond describing a planned “centre of excellence.” Investors and defense planners will likely look for follow-on agreements or program milestones to clarify scope and funding as the plan moves from an MOU toward execution.

What to watch next is whether Rheinmetall and Lockheed Martin convert the MOU into formal agreements covering launch orders, quality and delivery schedules, and local supply-chain arrangements, particularly as the company targets guided-missile components and rocket motor production at Unterluess starting as early as 2027. Industry observers will also monitor whether governments align national procurement schedules with the build-out timeline, since the effectiveness of industrial scaling often depends on sustained order flows and coordinated demand.