Lockheed Martin and German arms maker Rheinmetall agreed to jointly produce American missiles in Europe, a boost for the trans-Atlantic partnership and Europe's defense capabilities after Russia's invasion of Ukraine injected renewed impetus on the continent to rearm.

The companies said Tuesday that they had signed a memorandum of understanding to establish a joint venture for the production and distribution of long-range Army Tactical Missile System, or ATACMS, across members of the North Atlantic Treaty Organization and allied forces in Europe.

Production will take place at Rheinmetall's Unterluess facility in Germany, one of its largest sites that makes weapon systems and ammunition and tracked vehicles. Rheinmetall said a rocket-motor facility there was nearing completion, with production slated to begin as early as next year.

The announcement, which comes at the start of a NATO summit in Turkey, is a sign that Lockheed Martin and Rheinmetall have been able to hammer out their differences after months of discussions.

Rheinmetall Chief Executive Officer Armin Papperger said in May that progress on forming a partnership with Lockheed Martin to produce rockets and missiles in Germany was going slower than desired, pointing to tough discussions regarding the division of costs as one of the reasons.

Jay Pitman, president of Lockheed Martin's international operations, said the collaboration marked a watershed moment for defense cooperation between allies that would make it easier and faster to deliver ATACMS to partners.

ATACMS are guided missiles with a range of up to about 186 miles, according to Lockheed Martin, which holds the ATACMS trademark. ATACMS missiles are fired from the HIMARS and MLRS M270 platforms, according to the company's website.

For Lockheed Martin, joining forces with Rheinmetall would help the U.S. group seize on European defense budgets as governments spend to replenish their own stockpiles of weapons after diverting ammunition, rockets and other military hardware to Ukraine. It would also expand its manufacturing footprint as Unterluess will be the only production facility for ATACMS outside the U.S.

For Rheinmetall, the partnership means it can gain direct exposure to American technology and co-produce a powerful surface-to-surface weapon system that Ukraine has used to strike Russian territory.

It also expands Rheinmetall's web of partnerships. The company said in May that it aimed to start production of cruise missiles in a joint venture with Dutch defense technology company Destinus by the fourth quarter of this year or early 2027.

"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 defense policy," Papperger said.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

July 07, 2026 07:19 ET (11:19 GMT)

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