Lockheed Martin and Rheinmetall to Jointly Produce ATACMS Missiles in Germany

Key Facts

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.