Lockheed Martin and Rheinmetall sign MOU to co-produce ATACMS missiles in Germany

Lockheed Martin and German defense manufacturer Rheinmetall have signed a memorandum of understanding to co-produce ATACMS missiles in Germany, a step aimed at expanding local manufacturing of precision munitions for NATO and allied European forces. The companies said the agreement is intended to address near-term demand for munitions produced in Europe and to build toward a more permanent industrial structure for production, integration, and distribution.

Under the memorandum, the next step is “toward establishing a joint venture” for an initial European center of excellence for ATACMS manufacturing, integration, and distribution. The companies framed the effort as a way to combine Lockheed Martin’s missile expertise with Rheinmetall’s manufacturing capabilities, with the project supported by the United States and German governments, according to a release carried by PR Newswire.

The arrangement centers on production at Rheinmetall’s Unterluess site in Germany. Executives quoted in the announcement characterized the plan as strengthening Germany’s and Europe’s industrial base for modern defense systems that are in demand among European forces. Rheinmetall’s CEO, Armin Papperger, said the goal is to establish ATACMS production capacity in Germany as part of creating capabilities modern armed forces require.

Lockheed Martin said the partnership was discussed publicly in connection with the NATO Summit Defense Industry Forum. Jay Pitman, president of Lockheed Martin International, called the effort a “watershed moment” for European security and allied industrial cooperation, emphasizing faster delivery of combat-proven capabilities by pairing the U.S. firm’s technology with Rheinmetall’s manufacturing strength.

Lockheed Martin also named Dennis Goege, chief executive for Europe, who said bringing ATACMS co-production to Germany indicates long-term resilience for NATO and the allied defense industrial base. In his remarks, he connected the plan to industrial value creation in Germany while expanding production capacity to meet growing security demands, without specifying how much incremental capacity would result.

ATACMS, or Army Tactical Missile System, is a guided, short-to-long-range surface-to-surface missile used to strike targets at distance. For Lockheed Martin, the program matters because it ties into demand for precision fires and strategic munitions, and because expanding production outside the United States can be important for meeting delivery schedules for European customers.

Still, key commercial and execution details were not disclosed in the announcement. The companies did not provide the value of the proposed venture, expected production volumes, funding breakdown between partners and governments, a target start date for manufacturing at Unterluess, or timelines for full integration and distribution across NATO and allied forces. The memorandum language also leaves open how quickly the joint venture would be formed and what portion of ATACMS work would be conducted by each company during the build-out.

Sector-wide, the move underscores a broader push in European procurement to localize munition supply chains for faster responsiveness and to reduce dependency on single geographies. For investors and defense-watchers, the practical question is whether the co-production effort translates quickly into contracted deliveries and sustained throughput, particularly as NATO members seek to replenish stockpiles and address demand for precision munitions. Watch next for formal agreements beyond the MOU, including any joint-venture governance structure, confirmed production ramp plans, and evidence of follow-on orders tied to the Germany-based production hub.