Lockheed Martin and Rheinmetall have entered into a strategic agreement to co-manufacture the Army Tactical Missile System (ATACMS) in Europe, marking the first time production of the long-range tactical ballistic missile will be established outside the United States.
The partnership will create a joint venture responsible for establishing Europe’s first ATACMS Center of Excellence, supporting the manufacturing, integration, and distribution of the missile for NATO allies and partner nations across the continent.
Manufacturing operations will be carried out at Rheinmetall’s expanded Unterlüß production complex in northern Germany, where the company has recently invested in increasing ammunition and rocket motor production capabilities.
Expanding Missile Production in Europe
The initiative significantly strengthens Europe’s indigenous long-range strike manufacturing capacity at a time when demand for precision-guided missile systems continues to rise. Currently, no European-produced operational missile offers capabilities directly comparable to the ATACMS.
The missile is a GPS-guided tactical ballistic weapon capable of engaging high-value land targets at distances of up to 300 kilometers (186 miles). It can be launched from both the M142 HIMARS and M270 MLRS platforms already fielded by nine European countries, including Ukraine.
According to Rheinmetall CEO Armin Papperger, production is scheduled to begin in 2027, with manufacturing expected to scale up through 2029 to deliver between 600 and 800 ATACMS missiles annually for European and Ukrainian requirements.
New Manufacturing Hub
The agreement supports Lockheed Martin’s broader production strategy, which includes gradually transferring ATACMS manufacturing from its Camden, Arkansas, facility to Germany while dedicating future US production capacity to the newer Precision Strike Missile (PrSM).
Lockheed Martin noted that the Arkansas production line will remain operational until European manufacturing reaches full capacity.
The Unterlüß facility, spanning approximately 30,000 square meters, is expected to produce up to 350,000 artillery rounds per year by 2027. Beyond ATACMS production, the site will manufacture Guided Multiple Launch Rocket System (GMLRS) rockets, Hellfire and JAGM missiles, as well as PAC-3 interceptors for Patriot air defence systems, reinforcing Europe’s growing defence industrial base.
