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StocksMediumUpdated×2•Originally published 7 July 2026•Updated 7 July 2026•
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Lockheed Martin and Rheinmetall to Jointly Produce ATACMS Missiles in Germany

Key Facts

1Lockheed Martin and Rheinmetall signed a memorandum of understanding to jointly produce ATACMS missiles in Germany.
2This move marks the first manufacture of the short-range ballistic missile outside the United States.

In a move reflecting Europe's push to bolster domestic defense capabilities, Lockheed Martin and Rheinmetall have signed a memorandum of understanding to jointly produce ATACMS missiles in Germany. This agreement marks a significant strategic shift, as it represents the first time these short-range ballistic missiles will be manufactured outside the United States. The partnership aims to localize production within Europe in response to escalating regional security concerns.

This expansion occurs as European defense budgets see substantial growth, with Germany increasing its defense spending to exceed the NATO target of 2% of GDP. In comparison to peers, RTX (formerly Raytheon) has reported record backlogs driven by air defense demand, while Rheinmetall solidifies its position as a primary European partner for U.S. defense giants. Per market data, such partnerships reflect a deepening integration of military supply chains across the Atlantic.

Regarding market performance, LMT shares stood at $538, while RNMBF closed at $1292.86 (close July 6, 2026). Investors are closely monitoring upcoming German economic indicators, noting that recent annual inflation in Germany was recorded at 2.3% (data as of June 30, 2026), which may influence manufacturing and financing costs for major industrial projects in the region moving forward.

Latest Updates · 2

  1. Notable·

    Update: Lockheed Martin has further strengthened its order backlog by securing additional new contracts valued at $607 million. These awards bolster the company's cash flow outlook as it simultaneously scales its manufacturing footprint across Europe.

  2. Notable·

    Update: Recent reports indicate that the US government is considering expanding the scope of international manufacturing to include PAC-3 interceptor missiles. This move, if approved, would further strengthen existing partnerships between Lockheed Martin and European partners like Rheinmetall to include more sophisticated air defense systems.