Rheinmetall and Lockheed Martin to Co-produce ATACMS Missiles in Europe

German defense manufacturer Rheinmetall and American defense giant Lockheed Martin announced a plan to co-produce the Army Tactical Missile System (ATACMS) in Europe. The memorandum of understanding (MOU), signed on July 7, 2026, during the NATO Summit Defense Industry Forum, outlines the establishment of a joint venture for the manufacturing, integration, and distribution of ATACMS missiles for NATO and allied European forces.

This initiative, supported by the United States and German governments, addresses the immediate demand for locally produced munitions within Europe. The partnership seeks to leverage Lockheed Martin's missile expertise and Rheinmetall's manufacturing capabilities, particularly at its Unterlüss facility in Germany, marking the first ATACMS production outside the United States.

Rheinmetall CEO Armin Papperger stated that the agreement aims to strengthen Germany's and Europe's defense capabilities and industrial cooperation. He highlighted that establishing ATACMS production in Germany will create new capacities, secure supply chains, and enhance defense policy autonomy. Rheinmetall's Unterlüss site is already a key facility for weapon systems and ammunition, with new production lines for rocket motors and guided missile components scheduled to become operational as early as 2027.

Lockheed Martin executives noted that the collaboration combines proven U.S. technology with European manufacturing strength. The ATACMS missile has a consistent record of operational effectiveness, precision, and reliability in high-intensity conflicts. Increasing European production capacity for this weapon system is expected to bolster allied deterrence and contribute to transatlantic economies.