Lockheed Martin and Rheinmetall have signed a partnership agreement to jointly produce the Army Tactical Missile System (ATACMS) in Europe, significantly expanding manufacturing of the high-demand tactical ballistic missile beyond the United States.
As part of the agreement, the two companies will establish the first European Center of Excellence dedicated to the production, integration, and distribution of ATACMS for NATO members and allied European nations.
Production will be based at Rheinmetall’s Unterlüß facility in northern Germany, where the company has recently increased its ammunition and rocket motor manufacturing capacity to support growing regional demand.
Strengthening Europe’s Long-Range Strike Capability
The collaboration represents a major boost to Europe’s long-range strike industrial base, as the continent currently lacks an operational missile system directly comparable to the ATACMS.
The GPS-guided surface-to-surface ballistic missile has a maximum range of 300 kilometers (186 miles) and is designed to conduct precision strikes against high-value targets. It is compatible with both the M142 HIMARS and M270 Multiple Launch Rocket System (MLRS) launchers, which are currently operated by nine European nations, including Ukraine.
Rheinmetall Chief Executive Officer Armin Papperger stated in May that missile production at the new German facility is expected to begin in 2027 and gradually increase through 2029, with an annual output of 600 to 800 ATACMS missiles to meet demand across Europe and Ukraine.
Unterlüß Production Facility
The agreement aligns with Lockheed Martin’s strategy to gradually shift ATACMS manufacturing from its Camden, Arkansas, facility to Europe while transitioning future US production toward the next-generation Precision Strike Missile (PrSM).
The company confirmed that production in Arkansas will continue until the European manufacturing capability becomes fully operational.
Covering approximately 30,000 square meters (322,917 square feet)—roughly equivalent to five football fields—the Unterlüß facility is expected to manufacture up to 350,000 artillery shells annually by 2027.
In addition to ATACMS, the site will also produce GMLRS guided rockets, Hellfire missiles, Joint Air-to-Ground Missiles (JAGM), and PAC-3 interceptor missiles for the Patriot air defence system, making it one of Europe’s most significant defence manufacturing hubs.
