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Lockheed Martin and Rheinmetall agree to make ATACMS missiles in Germany as U.S. output winds down
The companies agreed to co-produce the missiles at Rheinmetall’s Unterlüß site, the first such manufacturing outside the United States. The memorandum was announced at the NATO Summit Defense Industry Forum in Ankara and is backed by both governments.
Jul 7, 7:54 AM·1m read2 sources
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Lockheed Martin and Rheinmetall signed a memorandum of understanding to co-produce ATACMS missiles at Rheinmetall’s Unterlüß site in northern Germany. Defense News reported that the agreement marks the first time the ballistic missile will be manufactured outside the United States. The MOU was announced at the NATO Summit Defense Industry Forum in Ankara.
Both the U.S. and German governments backed the deal, which the companies described as a step toward a joint venture that would create a European centre of excellence for manufacturing, integrating and distributing the missiles to NATO and allied forces. Rheinmetall CEO Armin Papperger stated that selecting Unterlüß strengthens the industrial base in Germany for modern defense systems.
Lockheed Martin’s European chief Dennis Goege stated that the deal pairs proven U.S. technology with European manufacturing strength. Unterlüß is a 125-year-old Rheinmetall site employing roughly 4,000 people.
A new artillery-ammunition plant opened there last year, and a rocket-motor factory nearing completion is slated to begin producing motors and guided-missile components as early as 2027. Papperger stated in May that full ATACMS missile production at Unterlüß would start in 2027 and scale up through 2028 and 2029.
Rheinmetall estimates annual European and Ukrainian demand for ATACMS at 600 to 800 units.
Lockheed Martin has been winding down ATACMS output at its Camden, Arkansas, plant while prioritizing the Precision Strike Missile, which is set to eventually replace ATACMS in the U.S. arsenal. The company says it will keep running the Arkansas line until the transition to European production is complete.
