The joint production agreement between Lockheed Martin and Rheinmetall could dramatically scale up global ATACMS production—and provide a reliable conduit of the long-range missiles to Ukraine.

The Ukrainian military will be able to maintain long-range pressure on the Russian forces well into the future, after Germany announced this week that it would co-produce one of the most important weapons of the Ukraine war.  

Lockheed Martin and Rheinmetall signed an agreement to co-produce the US MGM-140 Army Tactical Missile System (ATACMS) in Europe.  

ATACMS Production Comes to Europe 

The announcement took place after the two NATO member states signed a memorandum of understanding to increase defense production.  

“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 defence policy,” Armin Papperger, CEO Rheinmetall AG, said, according to a company media release.  

This move marks the first time the highly effective ballistic missile will be manufactured outside the United States. 

The weapon system will be produced in the German company’s Unterlüß site in the northern part of the country.

The decision to move partial production of the ATACMS to Europe has been long in the making. Even before the final agreement was signed, Rheinmetall had already invested in a new rocket motor factory in Germany that would support the ATACMS’ existing production infrastructure. Officials from the German arms manufacturer have assessed that production of rocket motors and guided missile components can commence as early as next year.  

“Bringing ATACMS co-production to Germany is a strong signal for Europe’s defense industry and for NATO’s long-term resilience,” Dennis Goege, Lockheed Martin’s chief executive for Europe, said. This partnership combines proven U.S. technology with European manufacturing strength, creating industrial value in Germany while expanding the capacity allies need to meet growing security demands.” 

The ATACMS Was Built with Russia in Mind

In an interesting echo of history, the ATACMS was designed to strike with precision against Soviet formations deep behind the frontlines. After the fall of the Soviet Union, American planners contemplated instead how it might be used in the Indo-Pacific. With Russia once again menacing NATO in Europe, the missile has returned to its roots.

Russia’s invasion of Ukraine in 2022 has ushered the weapons system into the global spotlight. Kyiv persistently requested the ATACMS for its forces for years before the US finally greenlighted a limited transfer of munitions. The Ukrainian forces have been frugal in their use of the precision munition, despite its tremendous battlefield effectiveness, because of its small stock.

The ATACMS munition is fired by the M142 High Mobility Artillery Rocket System (HIMARS) and the M270 Multiple Launch Rocket System (MLRS). The United States and NATO have transferred dozens of the two artillery rocket vehicles to the Ukrainian military. And the Ukrainians have put them to quite effective use—conducting precision strikes on Russian command and control centers, ammunition depots, troop and tank concentrations, transport infrastructure, and other high-value targets.

The ATACMS takes the HIMARS’ and MLRS’ firepower to a next level by allowing them to strike targets nearly 190 miles away and deep inside occupied Crimea and Russia proper. The weapon system has the option of a unitary or fragmentation warhead, allowing commanders to tailor their approach to the needs of the operational environment.

Co-production of the ATACMS in Europe will likely mean increased supply for the Ukrainian military. Of course, as a US weapon system, the Pentagon and State Department will still need to clear any transfers to Kyiv, even if new batches are made in Germany. But the obstacles to doing so are far smaller than shipping the missiles out of American stockpiles in the United States.

About the Author: Stavros Atlamazoglou  

Stavros Atlamazoglou is a seasoned defense journalist specializing in special operations and a Hellenic Army veteran (national service with the 575th Marine Battalion and Army HQ). He holds a BA from the Johns Hopkins University, an MA from the Johns Hopkins’ School of Advanced International Studies (SAIS), and a JD from Boston College Law School. His work has been featured in Business Insider, Sandboxx, and SOFREP. 

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