Lockheed Martin and German defense contractor Rheinmetall have formalized a memorandum of understanding to establish the first European manufacturing hub for ATACMS (Army Tactical Missile System) missiles. This partnership, which received support from both the U.S. and German governments, aims to enhance European security and allied industrial cooperation by combining Lockheed Martin's missile expertise with Rheinmetall's manufacturing capabilities. Production is slated to occur at Rheinmetall's Unterlüss site in northern Germany, a facility already known for its weapon systems, ammunition, and vehicle production, with a rocket motor factory nearing completion for 2027 operations.
The venture is positioned as a strategic investment to bolster the transatlantic industrial base and reduce reliance on a single U.S. manufacturing source. However, Rheinmetall CEO Armin Papperger has cautioned that while the initiative will strengthen European defense, it will not rapidly replenish U.S. inventories, particularly those depleted during the Iran conflict. First revenue from the European ATACMS production is anticipated in 2028, and significant stock rebuilding is expected to take considerably longer than two years due to the complexities of establishing production, technology transfer, and qualification processes.
The collaboration extends beyond ATACMS, with discussions also including the potential manufacture of Hellfire missiles. Lockheed Martin's existing ATACMS production line in Camden, Arkansas, will continue operations until the transition to European production is complete. This partnership is seen as a move to address the immediate demand for locally produced munitions in Europe, increase allied deterrence, and foster economic benefits across the Atlantic, contributing to Europe's defense autonomy while maintaining strong ties with U.S. technology and export controls.
