Germany set to become first international site for ATACMS missile production

Lockheed Martin and Rheinmetall have signed a memorandum of understanding to co-produce the U.S. Army Tactical Missile System (ATACMS) at Rheinmetall's Unterlüß site in northern Germany, marking the first time the ballistic missile will be manufactured outside the United States. The agreement, announced at the NATO Summit Defense Industry Forum in Ankara, is backed by both the U.S. and German governments and is seen as a step toward a joint venture creating a European "centre of excellence" for ATACMS production. Unterlüß, a 125-year-old Rheinmetall site employing roughly 4,000 people, has been expanding rapidly with a new artillery-ammunition plant and a rocket-motor factory nearing completion. Full missile production is expected to start in 2027 and scale up through 2029 to meet estimated annual European and Ukrainian demand of 600 to 800 units. The move addresses a bottleneck as Lockheed Martin winds down ATACMS output in Arkansas to prioritize the newer Precision Strike Missile. The partnership still requires U.S. government approval for technology transfer.