Lockheed Martin and Rheinmetall signed a memorandum of understanding (MOU) on July 7 to co-produce the Army Tactical Missile System (ATACMS) at Rheinmetall’s Unterlüß facility in northern Germany, establishing the first ATACMS production site outside the United States.
The deal was announced at the NATO Summit Defense Industry Forum in Ankara with backing from the U.S. and German governments. The companies described it as the next step toward a joint venture creating Europe’s first center for manufacturing, integrating, and distributing ATACMS to NATO and allied forces.
Rheinmetall CEO Armin Papperger said the deal would make Unterlüß “the world’s first and only production facility for ATACMS guided missiles outside the United States.” Jay Pitman, president of Lockheed Martin International, said the partnership would deliver “combat-proven capabilities faster and more efficiently to our allies.”
The announcement comes as Lockheed draws down ATACMS production at its Camden, Arkansas facility to prioritize the Precision Strike Missile (PrSM), the next-generation system earmarked to replace ATACMS in the U.S. arsenal.
In March 2026, Lockheed signed a framework agreement with the U.S. Department of War to quadruple PrSM output, building on a prior $4.94 billion Army contract. Europe is effectively absorbing a production line for a weapon the U.S. military is actively phasing out, and the Unterlüß facility must become operational before Camden’s transition is complete or allied demand goes unmet. Lockheed said it will keep the Arkansas line running during the changeover.
Rheinmetall’s Unterlüß site employs roughly 4,000 people. A rocket motor factory there is nearing completion, with missile component production targeted for 2027. Rheinmetall has estimated annual European and Ukrainian demand at 600 to 800 ATACMS units.
Full joint venture approval still requires U.S. government authorization, as export controls govern ATACMS technology transfers.
