Rheinmetall and Lockheed Martin have signed a memorandum of understanding (MOU) to advance the co-production of Army Tactical Missile System (ATACMS) missiles in Europe, addressing the urgent demand for locally manufactured munitions across allied nations. The announcement was made during the NATO Summit Defence Industry Forum in Ankara, Türkiye.
Supported by the United States and German governments, the agreement marks a key step toward establishing a joint venture that will create the first European centre of excellence for the manufacturing, integration and distribution of ATACMS for NATO and allied forces. The initiative is aimed at strengthening regional supply chains, accelerating delivery timelines, and enhancing operational readiness.
“This partnership marks a watershed moment for European security and allied industrial cooperation. By combining Lockheed Martin’s unmatched missile expertise with Rheinmetall’s manufacturing excellence, we’ll deliver combat-proven capabilities faster and more efficiently to our allies,” said Jay Pitman, President, Lockheed Martin International.
“Bringing ATACMS co-production to Germany is a strong signal for Europe’s defence industry and for NATO’s long-term resilience. This partnership combines proven U.S. technology with European manufacturing strength, creating industrial value in Germany while expanding the capacity allies need to meet growing security demands,” added Dennis Goege, Chief Executive for Europe at Lockheed Martin.
Highlighting the strategic importance of the collaboration, Armin Papperger, CEO of Rheinmetall AG, stated, “Our aim is to strengthen the defence capabilities of Germany and Europe. Together with Lockheed Martin, we are establishing the industrial base in Germany for modern defence systems in high demand by European armed forces. By setting up ATACMS production at our Unterlüß site, we are creating new capabilities, securing supply chains, and strengthening defence autonomy. We are proud to establish the first ATACMS production facility outside the United States.”
Rheinmetall’s Unterlüß facility, a key industrial hub with over 125 years of legacy, will play a central role in the programme. Employing around 4,000 personnel, the site specialises in weapon systems, ammunition production, and tracked vehicle development, and also hosts Europe’s largest privately owned firing range. Recent expansions include the commissioning of the “Werk Niedersachsen” artillery ammunition plant and the near-completion of a rocket motor manufacturing facility, with production expected to begin as early as 2027.
The co-production of ATACMS in Europe is expected to significantly enhance allied deterrence while contributing to economic growth on both sides of the Atlantic. Backed by decades of combat-proven performance, ATACMS has demonstrated high levels of precision, reliability, and effectiveness in modern conflict environments.
As global demand continues to rise, Lockheed Martin will maintain its existing production line in Camden, Arkansas, during the transition phase. The agreement further reinforces the company’s long-standing commitment to Europe, where it has supported defence and security partnerships for more than 75 years.
