United States defence company Lockheed Martin and German arms manufacturer Rheinmetall have agreed to begin producing Army Tactical Missile System (ATACMS) missiles in Germany, marking the first time the long-range missile will be manufactured outside the United States.
The agreement, announced during the NATO summit in Turkey, establishes Germany as the first overseas production hub for the US-developed ballistic missile system.
Under a memorandum of understanding, Rheinmetall will establish the production line at its artillery facility in Unterlüß, northern Germany. The missiles are expected to be supplied to NATO members and other partner nations.
Rheinmetall Chief Executive Officer Armin Papperger described the agreement as a significant step in strengthening Europe’s defence manufacturing capabilities.
“With our friends at Lockheed Martin, we are now establishing the industrial base in Germany for modern defence systems that are in high demand by Europe’s armed forces,” Papperger said.
The ATACMS missile has a maximum range of approximately 300 kilometres and has been extensively used by Ukraine during its war with Russia to strike military targets behind front lines.
The move reflects a broader effort by NATO allies to expand Europe’s defence production capacity as demand for advanced munitions continues to grow.
The agreement also comes amid increasing calls from the United States for European allies to invest more heavily in their own defence industries.
Meanwhile, senior US defence officials said Washington is also planning to establish a European maintenance hub for Lockheed Martin’s PAC-3 Patriot interceptor missiles, with Germany, Poland, Sweden and the Netherlands participating in the project.
US Undersecretary of Defense Michael Duffey said a final decision on the host country for the maintenance facility has not yet been made, but added that the United States is open to the possibility of eventually manufacturing Patriot interceptor missiles in Europe.
The Patriot system has become one of the most important air defence assets used by Ukraine and several US allies to counter ballistic missile threats.
According to Ukrainian President Volodymyr Zelenskyy, Lockheed Martin currently produces about 600 Patriot interceptors annually, while Russia is estimated to manufacture around 120 ballistic missiles each month.
Ukraine has repeatedly urged Western allies to expand production of missile defence systems, warning that growing Russian missile attacks continue to outpace available interceptor supplies.
The new ATACMS production line is expected to strengthen Europe’s defence industrial base while reducing reliance on US-based manufacturing for critical long-range weapons.
