New Era for Missile Production: ATACMS to be Manufactured in Germany
Lockheed Martin and Rheinmetall are breaking new ground by bringing the production of the Army Tactical Missile System (ATACMS) to Europe. This move marks the first time this ballistic missile will be made outside the United States, with manufacturing set to occur at Rheinmetall’s historic Unterlüß site in northern Germany.
The agreement, announced during the NATO Summit Defense Industry Forum in Ankara, has received support from both U.S. and German governments. This collaboration aims to establish a European “centre of excellence” for the production, integration, and distribution of ATACMS to NATO and allied forces.
Armin Papperger, CEO of Rheinmetall, emphasized the significance of selecting Unterlüß, stating it would bolster “the industrial base in Germany for modern defense systems.” Meanwhile, Dennis Goege, Lockheed Martin’s European chief, highlighted the partnership as an effective combination of “proven U.S. technology with European manufacturing strength.”
Unterlüß, a site with a 125-year legacy and a workforce of approximately 4,000, has been rapidly expanding its capabilities. Following the launch of a new artillery-ammunition plant last year, the site is nearing completion of a rocket-motor factory. This facility is expected to begin producing motors and guided-missile components by 2027, aligning with Rheinmetall’s projection of meeting the European and Ukrainian demand for 600 to 800 ATACMS units annually by 2028 and 2029.
This initiative addresses existing production challenges as Lockheed Martin shifts its focus to the newer Precision Strike Missile. The Arkansas plant in Camden is gradually reducing ATACMS output, though production there will persist until European manufacturing is fully operational.
The partnership between Rheinmetall and Lockheed Martin has been evolving for over a year. Initially, a missile-cooperation memorandum of understanding was signed in 2024, which expanded in April 2025 to encompass a broader “Center of Competence” for missile and guided weapon technologies. By August, discussions specifically concerning ATACMS and Hellfire missiles for Unterlüß were underway. However, the finalization of this joint venture awaits U.S. government approval, as the transfer of ATACMS technology requires Washington’s consent.
