During the NATO Summit Defense Industry Forum, Lockheed Martin (NYSE: LMT) and Rheinmetall announced the signing of a memorandum of understanding (MOU) that addresses the immediate demand for locally produced munitions in Europe.With the support of the United States and German governments, the agreement marks the next step toward establishing a joint venture to create the first European centre of excellence for the manufacturing, integration and distribution of ATACMS across NATO and allied European forces. Commissioned over 125 years ago, Rheinmetall’s Unterluess facility is one of the company’s most important sites. A total of about 4,000 employees work there. Its core competencies include the production of weapon systems and ammunition, as well as the development, manufacture, and maintenance of tracked vehicles. Unterluess is the largest privately owned firing range in Europe. Last year, the “Werk Niedersachsen”—one of the most modern production facilities for artillery ammunition—was put into operation. A rocket motor factory is currently nearing completion. Production of rocket motors and guided missile components is scheduled to begin as early as 2027.
By co-producing ATACMS missiles on European soil, the partnership supports local capability, increases allied deterrence and contributes to economies on both sides of the Atlantic. Backed by decades of extensive combat employment, ATACMS has consistently proven its operational effectiveness, precision, and mission reliability in high-intensity conflicts. With significant global demand for ATACMS, Lockheed Martin will continue operating its current production line in Camden, Arkansas until transition is complete. The agreement underscores Lockheed Martin’s commitment to Europe, forging deep, long-term co-production ties with European industry and customers. Lockheed Martin has been a strategic partner for the defense and security of Europe for more than 75 years and remains steadfast in its support of customers and partners across the region.
Armin Papperger, CEO Rheinmetall AG: “Our aim is to strengthen the defence capabilities of Germany and Europe. Together with our friends at Lockheed Martin, we are now establishing the industrial base in Germany for modern defence systems, which are in great demand by the armed forces of Europe. By establishing ATACMS production at Rheinmetall’s Unterluess site, we are creating new capabilities for Germany and Europe, securing supplies for our customers and strengthening our autonomy in defence policy. We are grateful that Rheinmetall has been selected to set up and operate the world’s first and only production facility for ATACMS guided missiles outside the United States.”
“Bringing ATACMS co-production to Germany is a strong signal for Europe’s defense industry and for NATO’s long-term resilience. This partnership combines proven U.S. technology with European manufacturing strength, creating industrial value in Germany while expanding the capacity allies need to meet growing security demands,” said Dennis Goege, chief executive for Europe at Lockheed Martin.
“This partnership marks a watershed moment for European security and allied industrial cooperation. By combining Lockheed Martin’s unmatched missile expertise with Rheinmetall’s manufacturing excellence, we’ll deliver combat-proven capabilities faster and more efficiently to our allies,” said Jay Pitman, president, Lockheed Martin International.
The MGM-140 Army Tactical Missile System (ATACMS) is a short-range supersonic tactical ballistic missile designed and manufactured by the American defense company Ling-Temco-Vought (LTV), and later, through acquisitions, Lockheed Martin. The new missile system, designated Joint Tactical Missile System (JTACMS), soon encountered USAF resistance to the idea of an air-launched ballistic missile. As a result, in 1984 the USAF ended its participation in the non-cruise missile portion of the program, leading to the missile being redesignated as the Army Tactical Missile System (ATACMS). JTACMS was intended to be a jointly funded program with NATO allies; the United Kingdom, Federal Republic of Germany, Belgium, the Netherlands and Italy were initially contacted about joining the program, with the British and Germans expressing interest, while the others declined due to lacking adequate funds. Development of the missile now known as ATACMS started in 1980, when the US Army decided to replace the Lance with a similar nuclear, but also chemical or biological, tipped solid-fuel missile dubbed the Corps Support Weapon System (CSWS). The missile uses solid propellant and is 13 feet (4.0 m) long and 24 inches (610 mm) in diameter, and the longest-range variants can fly up to 190 miles (300 km). It can be fired from the tracked M270 Multiple Launch Rocket System (MLRS) and the wheeled M142 High Mobility Artillery Rocket System (HIMARS).
Headquartered in Duesseldorf, Germany, publicly traded Rheinmetall AG is a integrated technology group. With some 34,000 employees at 160 locations worldwide, Rheinmetall is a leading international supplier of defence systems and a driver of forward-looking technological and industrial innovation in the civil sector. A strong commitment to sustainability is an integral component of Rheinmetall strategy. The group was promoted to the DAX, Germany’s leading stock market index, in March 2023. It is the largest German and fifth-largest European arms manufacturer, and produces a variety of armored fighting vehicles and armored personnel carriers, in both wheeled and tracked versions, as well as warships through Blohm+Voss. It also manufactures artillery, air defence systems, anti-tank weapons and ammunition. Its name is derived from the German-language words Rhein and Metall, translating to “Rhine-metal” when combined.
The Lockheed Martin Corporation is an American defense and aerospace manufacturer. It is headquartered in North Bethesda, Maryland, United States. The company was formed by the merger of the Lockheed Corporation with Martin Marietta on March 15, 1995. Lockheed Martin operates 4 divisions: Lockheed Martin Aeronautics; Lockheed Martin Missiles and Fire Control; Lockheed Martin Rotary and Mission Systems; and Lockheed Martin Space. Lockheed Martin currently produces the F-35 and leads the international supply chain, leads the team for the development and implementation of technology solutions for the new USAF Space Fence (AFSSS replacement), and is the primary contractor for the development of the Orion command module. The company also invests in healthcare systems, renewable energy systems, intelligent energy distribution, and compact nuclear fusion.
