Lockheed Martin and Rheinmetall to Build First ATACMS Missile Production Line Outside the US

American defense company Lockheed Martin and Germany’s Rheinmetall have agreed to establish the first production facility for ATACMS tactical ballistic missiles outside the United States, with manufacturing set to take place at Rheinmetall’s plant in Unterlüß, Germany.

The companies announced the agreement on July 7 during the NATO Summit Defence Industry Forum in Ankara.

According to Lockheed Martin, the memorandum of understanding—backed by the US and German governments—is the next step toward creating a joint venture that will serve as Europe’s first center for the production, integration, and distribution of ATACMS missiles for NATO members and other European allies.

“This partnership marks a turning point for European security and allied industrial cooperation. By combining Lockheed Martin’s unmatched missile expertise with Rheinmetall’s advanced manufacturing capabilities, we can deliver combat-proven capabilities to our allies faster and more efficiently,” said Jay Pitman, President of Lockheed Martin International.

The production line will be located at Rheinmetall’s Unterlüß facility, one of the company’s largest industrial sites, where around 4,000 employees manufacture ammunition, weapon systems, tracked armored vehicles, and other military equipment.

According to Lockheed Martin, production of rocket motors and guided missile components is expected to begin in 2027. The company said it will continue operating its existing ATACMS production line in Camden, Arkansas, during the transition period to meet ongoing global demand.

Rheinmetall CEO Armin Papperger described the project as a milestone for European defense manufacturing.

“We are grateful that Rheinmetall has been selected to establish and operate the first and only ATACMS guided missile production facility outside the United States.”

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According to Lockheed Martin, localizing production in Europe is intended to strengthen the continent’s defense industrial base, improve supply resilience for NATO allies, and expand manufacturing capacity as demand for long-range precision weapons continues to grow.

ATACMS (Army Tactical Missile System) is a US-developed tactical ballistic missile designed for launch from M270 MLRS and M142 HIMARS launchers. The latest operational variant carries a 230-kilogram high-explosive warhead and has a range of up to 300 kilometers. While the system remains widely used, the US military is gradually replacing ATACMS with the next-generation Precision Strike Missile (PrSM), which is expected to exceed 500 kilometers in range.

Earlier, NATO announced two new initiatives—NATO Front Door for Industry and NATO Engine—to expand weapons production, improve cooperation with defense companies, and strengthen the Alliance’s defense industrial capacity, including support for Ukraine.

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