LMT Stock: Lockheed Martin Partners with Rheinmetall for German Missile Plant

TLDR

• Lockheed Martin (LMT) and Rheinmetall signed an MOU to jointly produce ATACMS missiles in Germany — a first outside the U.S.
• Production will take place at Rheinmetall’s Unterluess facility in northern Germany.
• The deal is backed by both the U.S. and German governments.
• The partnership aims to create a European hub for ATACMS manufacturing, integration, and distribution for NATO allies.
• Rocket motor and guided missile component production at Unterluess is scheduled to begin as early as 2027.

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Lockheed Martin (LMT) closed down 1.45% on Tuesday. Rheinmetall (RHMG) gained 1.13% on the day the two defence companies signed a memorandum of understanding to co-produce ATACMS missiles in Europe.

Lockheed Martin Corporation, LMT

The agreement was signed at a NATO Industry Forum on the sidelines of the NATO Summit in Ankara, Turkey.

It marks the first time the Army Tactical Missile System — known as ATACMS — will be manufactured outside the United States.

The deal has the backing of both the U.S. and German governments, adding a layer of governmental support that typically accelerates these types of defence partnerships.

The two companies said the MOU is a step toward forming a full joint venture. That venture would create what they called a “European centre of excellence” for the production, integration, and distribution of ATACMS across NATO and allied forces.

Production will be based at Rheinmetall’s Unterluess site in Lower Saxony, northern Germany. The facility has been operating for over 125 years and employs around 4,000 people.

Unterluess already produces weapon systems, ammunition, and tracked vehicles. It also holds the title of the largest privately owned firing range in Europe.

Rheinmetall CEO Armin Papperger called the move a step toward strengthening European defence autonomy. He said it creates “new capabilities for Germany and Europe” while securing supply for customers.

Jay Pitman, president of Lockheed Martin International, said the partnership would deliver “combat-proven capabilities faster and more efficiently” to allies.

Dennis Goege, Lockheed Martin’s chief executive for Europe, framed it as a signal of NATO’s long-term resilience, combining U.S. missile technology with European manufacturing.

Why ATACMS?

ATACMS is a short-range ballistic missile with a long combat track record. It has been used in high-intensity conflicts and is considered a precision, proven system by NATO members.

Demand for the missile has risen sharply as allies look to replenish weapons stockpiles strained by the conflicts in Ukraine and the Middle East.

Lockheed Martin said it will continue operating its existing ATACMS production line in Camden, Arkansas, until the transition to European co-production is complete.

Timeline and Next Steps

A rocket motor factory at Unterluess is currently nearing completion. Production of rocket motors and guided missile components is scheduled to begin as early as 2027.

Last year, Rheinmetall opened “Werk Niedersachsen” at the site — described as one of the most modern artillery ammunition production facilities in Europe.

Lockheed Martin has operated as a strategic defence partner in Europe for more than 75 years. The company says this agreement deepens that relationship with long-term industrial ties.

The MOU was signed Tuesday, July 7, 2026, on the sidelines of the NATO Summit in Ankara.

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