Lockheed Martin and Rheinmetall Sign Deal to Produce ATACMS in Germany
Alina Collins
Lockheed Martin and Rheinmetall signed a memorandum of understanding to jointly produce ATACMS short-range ballistic missiles in Germany — the first time the weapon will be manufactured outside the United States, signaling a broader NATO push to localize defense production in Europe.
What exactly does this deal cover?
The two companies signed an MOU to jointly produce ATACMS — the Army Tactical Missile System, a short-range ballistic missile — in Germany.
This means → ATACMS will be manufactured outside the U.S. for the first time, breaking decades of sole-source domestic production.
The end goal is a joint venture creating a European manufacturing, integration, and distribution hub for NATO members and allied nations.
Where will the missiles be built?
Rheinmetall CEO Armin Papperger confirmed production will take place at the company's artillery plant in Unterlüß, northern Germany.
The MOU has the backing of both the U.S. and German governments and is a precursor to a formal joint venture.
It was signed at the NATO Industrial Forum on the sidelines of the NATO summit in Ankara — a venue choice that is itself a signal.
Why move production to Europe now?
In plain terms = the wars in Ukraine and the Middle East have drawn down NATO weapons stockpiles faster than U.S. factories alone can replenish them.
This means → Washington and its European allies are jointly pushing to expand defense-industrial capacity, spreading critical munitions production across both sides of the Atlantic.
This reflects a deeper NATO shift: from "America builds, allies buy" to "manufacture where the need is."
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