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Rheinmetall and Lockheed to Build Europe’s First ATACMS and Patriot Missile Factory

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Rheinmetall and Lockheed to Build Europe’s First ATACMS and Patriot Missile Factory
A US-made MIM-104 Patriot surface-to-air missile launched during a live fire exercise at the Chiupeng missile base in Pingtung County on August 20, 2024. (Source: Getty Images)

German defense giant Rheinmetall and US prime contractor Lockheed Martin agreed to set up a Europe-based joint venture that will build some of Washington’s most in-demand missiles, Rheinmetall CEO Armin Papperger told Hartpunkt on May 16.

The planned facility—described by Papperger as a “European center of excellence for rockets”—would turn out up to 10,000 missiles and an equal number of rocket motors each year, including ATACMS tactical ballistic missiles (300 km range), GMLRS guided rockets (150 km) for HIMARS and M270 launchers, Hellfire and JAGM air-launched missiles, and PAC-3 interceptors for Patriot air-defense batteries.

Rheinmetall expects to hold a 60 percent stake once the US government signs off, a decision that could clear the way for production lines to be ready within 12-13 months, motors rolling out in 2026, and full missile assembly by 2027.

Papperger says European customers currently need roughly 600–800 ATACMS , 2,500 GMLRS , 5,000 Hellfires , 5,200 JAGM , and 300 PAC-3  rounds every year, demand that could push annual revenue from the venture to about €5 billion.

Lockheed Martin, which is phasing out ATACMS production at home as it ramps up the next-generation Precision Strike Missile, may shift remaining US orders to the new plant, generating an initial €1–2 billion in turnover.

The CEO believes capacity will fill quickly, citing Ukraine’s urgent requirement for Patriot interceptors and other precision munitions. Intellectual property rights for any new designs will stay on the European side, and both partners plan full vertical integration to shorten supply chains.

Lockheed confirmed it is “working with European allies to identify cooperative opportunities that meet global demand for US munitions and precision-strike systems.”

The venture idea was hammered out during this year’s Munich Security Conference, where industry leaders also discussed securing five-year, high-up-front contracts with electronics suppliers to lock in critical parts.

Earlier, reports emerged that Ukraine has received at least eight units of the Raven short-range air defense system from the United Kingdom, with five more currently being prepared for delivery.

Designed to counter aerial threats such as Shahed-type drones, the system has conducted over 400 launches with a reported success rate of approximately 70%.

The Raven system was developed by the UK specifically for Ukraine in 2023, using a SupaCat HMT 600 vehicle chassis and AIM-132 ASRAAM air-to-air missiles adapted for surface launches.

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The MGM-140 Army Tactical Missile System (ATACMS) is a supersonic tactical ballistic missile designed and manufactured by the American defense company Ling-Temco-Vought (LTV), and later, through acquisitions, Lockheed Martin. The missile uses solid propellant and is 13 feet (4.0 m) long and 24 inches (610 mm) in diameter, and the longest-range variants can fly up to 190 miles (300 km). It can be fired from the tracked M270 Multiple Launch Rocket System (MLRS) and the wheeled M142 High Mobility Artillery Rocket System (HIMARS).

Guided multiple launch rocket system (GMLRS) rockets have a GPS-aided inertial navigation system and extended range. Flight control is accomplished by four forward-mounted canards driven by electromechanical actuators.

The AGM-114 Hellfire is an American missile developed for anti-armor use, later developed for precision drone strikes against other target types, especially high-value targets. It was originally developed under the name “Heliborne laser, fire-and-forget missile”, which led to the colloquial name “Hellfire” ultimately becoming the missile’s formal name. It has a multi-mission, multi-target precision-strike ability and can be launched from multiple air, sea, and ground platforms, including the MQ-1 Predator and MQ-9 Reaper. The Hellfire missile is the primary 100-pound (45 kg) class air-to-ground precision weapon for the armed forces of the United States and many other countries. It has also been fielded on surface platforms in the surface-to-surface and surface-to-air roles.

The AGM-179 Joint Air-to-Ground Missile (JAGM) is an American military program to develop an air-to-surface missile, to replace the current air-launched BGM-71 TOW, AGM-114 Hellfire, and AGM-65 Maverick missiles.

The PAC-3 is an upgrade for a Patriot complex and missile, nominally known as MIM-104F and called PAC-3 by the Army.

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