Lockheed Martin and Rheinmetall have signed an agreement to co-produce the Army Tactical Missile System (ATACMS) in Europe, expanding production of the in-demand ground-launched tactical ballistic missile beyond the US.
Under the agreement, a joint venture will establish the first center of excellence for the manufacturing, integration, and distribution of ATACMS for NATO and allied European forces.
Manufacturing will take place at Rheinmetall’s Unterlüß site in northern Germany, where the company has recently expanded its ammunition and rocket motor production capacity.
“Bringing ATACMS co-production to Germany is a strong signal for Europe’s defense industry and for NATO’s long-term resilience,” Chief Executive for Europe at Lockheed Martin Dennis Goege said.
“This partnership combines proven US technology with European manufacturing strength, creating industrial value in Germany while expanding the capacity allies need to meet growing security demands.”
Addressing European Demand
The initiative marks a significant expansion of Europe’s long-range strike industrial base, as the continent currently lacks an operational missile equivalent to the ATACMS.
The GPS-guided, surface-to-surface ballistic missile has a range of up to 300 kilometers (186 miles) and is designed to conduct precision strikes against high-value targets. It is compatible with the M142 HIMARS and M270 Multiple Launch Rocket System launchers operated by nine European countries, including Ukraine.
Rheinmetall CEO Armin Papperger said in May that full missile production at the new facility would begin in 2027, then ramp up through 2029 to meet annual European and Ukrainian demand for 600 to 800 ATACMS missiles.
“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,” Papperger said.
“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 US.”
Unterlüß Plant
The agreement comes as Lockheed Martin transitions ATACMS production from its Camden, Arkansas, facility to Europe while shifting future US manufacturing to the newer Precision Strike Missile, despite continued strong demand in Europe and Ukraine.
Lockheed said the Arkansas production line will remain in operation until the European manufacturing capability is fully established.
Spanning 30,000 square meters (322,917 square feet) — roughly the size of five football pitches — the Unterlüß facility is expected to produce up to 350,000 artillery shells annually by 2027.
Besides ATACMS, the facility will also manufacture GMLRS guided rockets, Hellfire and JAGM air-launched missiles, and PAC-3 interceptors for Patriot air defense batteries.
