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

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.
