UNIPA News Desk|| 08 July-US defence company Lockheed Martin and German defence manufacturer Rheinmetall have agreed to begin producing Army Tactical Missile System (ATACMS) missiles in Germany, marking the first time the US-developed weapon will be manufactured outside the United States.

The agreement, announced on Tuesday under a memorandum of understanding, provides for Rheinmetall to establish a European production hub at its artillery facility in Unterlüß, northern Germany. The plant will assemble ATACMS missiles for NATO member states and other partner countries.

ATACMS is a short-range ballistic missile with a range of up to 300 kilometres and has been extensively used by Ukraine during the war with Russia. The move reflects growing efforts by European allies to strengthen regional defence production and reduce dependence on overseas manufacturing.

Rheinmetall Chief Executive Armin Papperger said the partnership with Lockheed Martin would help establish an industrial base in Germany for advanced defence systems that are in high demand across Europe. He added that the facility would be the world’s first production site for ATACMS missiles outside the United States.

The announcement coincides with the NATO summit in Turkey, where European defence capabilities and increased military spending are among the key issues on the agenda.

The agreement also signals a broader shift toward expanding defence manufacturing capacity in Europe as demand for precision-guided munitions continues to rise.