Lockheed Martin and Germany's Rheinmetall have agreed to jointly produce American ATACMS missiles in Europe, signing a memorandum of understanding for a joint venture at Rheinmetall's Unterluess site. The deal lands as a NATO summit opens in Turkey and marks the first ATACMS production outside the United States.
Lockheed Martin and German arms maker Rheinmetall agreed to jointly produce American missiles in Europe, a boost for the trans-Atlantic partnership and for Europe's push to rearm after Russia's invasion of Ukraine. The two companies said Tuesday they had signed a memorandum of understanding to establish a joint venture for the production and distribution of the long-range Army Tactical Missile System, or ATACMS, across NATO members and allied forces in Europe.
Production heads to Unterluess
Manufacturing will run at Rheinmetall's Unterluess facility in Germany, one of its largest sites for weapon systems, ammunition and tracked vehicles. Rheinmetall said a rocket-motor facility there was nearing completion, with production slated to begin as early as next year.
The announcement comes at the start of a NATO summit in Turkey and signals that the two companies have settled their differences after months of talks. Rheinmetall Chief Executive Armin Papperger said in May that progress on the partnership was going slower than desired, citing tough discussions over how to divide costs as one of the reasons.
Why each side wants the deal
For Lockheed Martin, the tie-up would help the U.S. group tap European defense budgets as governments replenish stockpiles drained by shipments to Ukraine. It also widens the company's manufacturing footprint, since Unterluess will be the only ATACMS production facility outside the U.S. The missiles are guided weapons with a range of up to about 186 miles, according to Lockheed Martin, and are fired from the HIMARS and MLRS M270 platforms.
For Rheinmetall, the venture brings direct exposure to American technology and lets it co-produce a surface-to-surface weapon Ukraine has used to strike Russian territory. It also extends the German firm's partnership web, after it said in May it aimed to start cruise-missile production with Dutch company Destinus by the fourth quarter of this year or early 2027. According to Morningstar, Papperger said the plan is "creating new capabilities for Germany and Europe" and strengthening the country's defense autonomy.
Source: Morningstar
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