Key Highlights
- Lockheed Martin (LMT) and Rheinmetall have entered a memorandum of understanding to manufacture ATACMS missiles in Germany — marking the inaugural production site outside U.S. borders.
- Manufacturing operations will be established at Rheinmetall’s Unterluess site in Lower Saxony, northern Germany.
- Both U.S. and German government officials have endorsed the agreement.
- The collaboration seeks to establish a European manufacturing center for ATACMS production, assembly, and delivery to NATO member nations.
- Initial production of rocket motors and precision missile components at the German facility is expected to commence by 2027.
Shares of Lockheed Martin (LMT) declined 1.45% during Tuesday’s trading session. Meanwhile, Rheinmetall (RHMG) saw its stock rise 1.13% following the announcement that both defense manufacturers signed a strategic memorandum of understanding for European ATACMS missile co-production.
Lockheed Martin Corporation, LMT
The memorandum was executed at a NATO Industry Forum taking place alongside the NATO Summit in Ankara, Turkey.
This agreement represents a watershed moment as the Army Tactical Missile System — commonly referred to as ATACMS — will be produced outside American territory for the first time in its history.
Both the United States and German governments have thrown their weight behind the initiative, providing institutional support that often expedites such strategic defense collaborations.
According to statements from both corporations, this memorandum of understanding paves the way for establishing a comprehensive joint venture. The proposed venture would establish what the companies described as a “European centre of excellence” dedicated to manufacturing, integrating, and distributing ATACMS systems throughout NATO and partner nations.
Manufacturing activities will be concentrated at Rheinmetall’s Unterluess complex located in Lower Saxony, northern Germany. This historic facility has maintained continuous operations for more than 125 years and currently employs approximately 4,000 workers.
The Unterluess site currently manufactures weapon platforms, munitions, and armored tracked vehicles. Additionally, it operates Europe’s largest privately controlled weapons testing and firing range.
Armin Papperger, chief executive of Rheinmetall, characterized the partnership as advancing European defense independence. He emphasized that it generates “new capabilities for Germany and Europe” while guaranteeing reliable supply chains for clients.
Jay Pitman, who serves as president of Lockheed Martin International, indicated the alliance would provide “combat-proven capabilities faster and more efficiently” to allied nations.
Dennis Goege, Lockheed Martin‘s chief executive for European operations, characterized the agreement as demonstrating NATO’s enduring strength by merging American missile expertise with European industrial capacity.
The Strategic Importance of ATACMS
The Army Tactical Missile System is a short-range ballistic weapon with an extensive operational history. It has demonstrated effectiveness in high-intensity warfare scenarios and is recognized as a precise, battle-tested platform by NATO alliance members.
Demand for these missile systems has surged dramatically as allied forces seek to replenish weapons inventories depleted by ongoing conflicts in Ukraine and Middle Eastern theaters.
Lockheed Martin confirmed it will maintain operations at its current ATACMS manufacturing facility in Camden, Arkansas, throughout the transition period until European co-production reaches full operational capacity.
Production Schedule and Future Developments
Construction of a rocket motor manufacturing plant at the Unterluess location is approaching completion. Initial production of rocket propulsion systems and guided missile subsystems is projected to begin by 2027.
In the previous year, Rheinmetall inaugurated “Werk Niedersachsen” at the same site — characterized as among Europe’s most technologically advanced artillery ammunition manufacturing complexes.
Lockheed Martin has maintained strategic defense partnerships throughout Europe for over 75 years. Company representatives indicate this latest agreement significantly strengthens that relationship through sustained industrial collaboration.
The memorandum of understanding was formally executed on Tuesday, July 7, 2026, during events concurrent with the NATO Summit in Ankara.
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