Lockheed Martin and Rheinmetall sign MOU to co-produce ATACMS in Germany, aiming for first European output by 2027

Lockheed Martin and Germany’s Rheinmetall have signed a memorandum of understanding to advance co-production of ATACMS, the Army’s tactical missile system, in Europe, according to coverage of the announcement during the NATO Summit Defense Industry Forum. The companies said the agreement is intended to address “immediate demand” for locally produced munitions, while building a dedicated European industrial capacity for the missile’s manufacturing, integration and distribution.

Under the MOU, Lockheed and Rheinmetall plan to create what they describe as the first European “center of excellence” for ATACMS. The industrial model described in the announcement ties Lockheed’s missile expertise to Rheinmetall’s manufacturing capabilities, with U.S. and German government support cited as part of the effort to move from intent to a production-ready supply base.

Rheinmetall will host the planned ATACMS production work at its Unterluess site in Germany, the companies said. Rocket motor and guided-missile component production at Unterluess is described as scheduled to begin as early as 2027, suggesting that any output timeline will depend on permitting, engineering readiness, and government approvals rather than being immediate.

Lockheed Martin executives framed the deal as an effort to shorten timelines for allies and deepen industrial cooperation. Jay Pitman, president of Lockheed Martin International, said the partnership combines Lockheed’s missile expertise with Rheinmetall’s manufacturing “to deliver combat-proven capabilities faster and more efficiently.” Dennis Goege, chief executive for Europe at Lockheed Martin, called bringing ATACMS co-production to Germany a announcement for European defense resilience and deterrence, adding that the arrangement would create industrial value in Germany.

Rheinmetall’s chief executive Armin Papperger emphasized the supply and autonomy angle, describing ATACMS production in Germany as a way to strengthen defense capabilities for Germany and Europe. He also said the planned factory would help secure supplies for customers, positioning the agreement as a component of broader efforts to expand European ammunition and missile production capacity.

The announcement also implies a shift toward distributed NATO-aligned procurement, where European governments seek more local output for munitions they may otherwise depend on for deliveries from overseas supply chains. In that context, ATACMS is a particularly consequential target for capacity expansion because it is a guided, longer-range strike munition that can stress production and inventory planning during periods of heightened operational demand.

Still, the details released in the public announcement leave important questions open. The companies did not, in the materials cited in the reporting, specify the financial terms of the proposed joint venture, the exact production rate, how much work would involve integration versus subcomponent manufacturing, or the specific contracting mechanism and customer allocation for early missile lots.

Market-watchers will likely focus next on whether the MOU turns into signed contracts with clear scope, schedules, and funding. The companies also may need to provide more information on how the planned 2027 start point will be validated through early engineering steps, supply-chain buildout, and government oversight, especially if allies are pressing for faster-than-normal delivery timelines.