Lockheed Martin and Rheinmetall have signed a Memorandum of Understanding (MoU) to establish the first production facility for the Army Tactical Missile System (ATACMS) outside the United States, marking a major step in strengthening Europe’s long-range strike industrial base and NATO’s collective defence capabilities.

The agreement, announced during the NATO Summit Defence Industry Forum in Ankara, lays the foundation for a joint venture that will create a European centre of excellence for the manufacture, integration and distribution of ATACMS missiles for NATO and allied European armed forces.

The initiative has received the support of both the United States and German governments and responds to the rapidly growing demand for locally produced precision-guided munitions across Europe.

Jay Pitman, President of Lockheed Martin International, described the partnership as “a watershed moment for European security and allied industrial cooperation,” noting that the combination of Lockheed Martin’s missile expertise and Rheinmetall’s industrial capacity will enable faster and more efficient delivery of combat-proven capabilities to allied nations.

Dennis Goege, Chief Executive for Europe at Lockheed Martin, said establishing ATACMS co-production in Germany demonstrates the company’s long-term commitment to strengthening Europe’s defence industrial base while increasing the production capacity required to meet the continent’s evolving security needs.

Rheinmetall Chief Executive Officer Armin Papperger highlighted the strategic significance of the project, stating that local production will enhance both Germany’s and Europe’s defence capabilities while improving supply security for European customers.

“By establishing ATACMS production at Rheinmetall’s Unterlüß site, we are creating new capabilities for Germany and Europe, securing supplies for our customers and strengthening our autonomy in defence policy,” Papperger said.

He added that Rheinmetall is honoured to have been selected to establish and operate the world’s first ATACMS production facility outside the United States.

Manufacturing will take place at Rheinmetall’s Unterlüß facility in northern Germany, one of the company’s principal defence production sites employing approximately 4,000 personnel.

The site already manufactures weapon systems and ammunition, develops and maintains tracked combat vehicles, and operates Europe’s largest privately owned firing range.

Its industrial capacity has recently been expanded with the commissioning of the Werk Niedersachsen artillery ammunition plant, while construction of a new rocket motor production facility is nearing completion. Production of rocket motors and guided missile components is expected to begin in 2027, providing key infrastructure for future ATACMS manufacturing.

The new production line is intended to significantly expand allied missile manufacturing capacity while reducing dependence on transatlantic supply chains.

According to the companies, European co-production will:

• Increase NATO’s stockpiles of precision long-range strike weapons;
• Strengthen Europe’s defence industrial resilience;
• Improve supply security for European customers;
• Enhance allied deterrence through increased production capacity; and
• Generate industrial and economic benefits on both sides of the Atlantic.

Lockheed Martin noted that, despite the new European production capability, its existing ATACMS production line in Camden, Arkansas, will continue operating until the transition is completed in order to satisfy continuing global demand.

The agreement also reinforces Lockheed Martin’s broader strategy of expanding industrial cooperation with European defence companies through local manufacturing and technology partnerships, reflecting the alliance’s growing emphasis on strengthening Europe’s defence industrial base amid increased demand for advanced precision-guided weapons.

Backed by decades of operational service and extensive combat employment, ATACMS remains one of NATO’s most capable tactical ballistic missile systems, providing precision strikes against high-value targets at long range. The new partnership is expected to ensure that European allies can access increased production capacity while reinforcing NATO’s collective deterrence posture.