Lockheed Martin and Rheinmetall have agreed to pursue the co-production of the Army Tactical Missile System, known as ATACMS, at a facility in Germany. The companies announced the plan on July 7, 2026, following the signing of a memorandum of understanding at the NATO Summit Defense Industry Forum in Ankara. The agreement has the support of the United States and German governments.
The proposed production hub will be located at Rheinmetall’s Unterluess site. This location would serve as the first center in Europe dedicated to manufacturing, integrating, and distributing the missile for NATO and allied users. The initiative aims to expand European production of the weapon, reduce supply chain vulnerabilities, and improve the Alliance’s ability to sustain deterrence during prolonged crises.
The ATACMS is a long-range precision strike weapon developed by the United States. It is designed to be launched from HIMARS and M270 MLRS platforms. The system allows land forces to strike high-value targets at extended ranges, including command centers, ammunition depots, logistics nodes, and air-defense positions. Lockheed Martin stated that the system has demonstrated precision, effectiveness, and mission reliability in high-intensity conflicts over decades of operational use.
The agreement reflects a strategic shift in NATO’s long-range strike posture by bringing deep-strike capability closer to potential theaters of operation. The move is intended to reinforce transatlantic interoperability and support a broader shift toward resilient, regionally based defense-industrial capacity within Europe. The companies described the plan as a response to the urgent need for locally produced precision munitions amid growing security pressures.
Details regarding the specific timeline for production, the total investment amount, or the number of missiles to be manufactured were not provided in the announcement. It is not yet clear which specific NATO member states will be the primary recipients of the co-produced missiles beyond the general reference to allied users.
