German defense company Rheinmetall and American company Lockheed Martin have announced the creation of a joint venture to produce ATACMS, GMLRS, Hellfire, JAGM and PAC-3 missiles in Europe. This was reported on May 16, 2025, by the publication Hartpunkt, citing a statement by Rheinmetall CEO Armin Papperger. The project, aimed at reducing NATO's dependence on supplies from the United States and accelerating the supply of European armies, envisages the production of up to 10 missiles annually. Production is planned to start in 000-2026, and the main site will be located in Unterlüss, Germany, where a rocket engine plant is already operating.

The joint venture, in which Rheinmetall will control 60% of the shares, aims to produce key munitions for the Patriot and HIMARS systems, including the GMLRS guided missiles (range up to 150 km), ATACMS (up to 300 km), Hellfire and JAGM (air-to-ground), as well as the PAC-3 for ballistic missile defense. Papperger noted that the project involves full vertical integration, including development, assembly and final production in Europe, which will allow intellectual property to be kept in the region. According to his estimates, by 2028-2029 the enterprise could reach revenues of €5 billion at full capacity.

The initiative arose at the 2024 Munich Security Conference, where Papperger and Lockheed Martin CEO Jim Taiclet discussed the creation of a “Missile Superiority Center.” The project requires U.S. government approval because the ATACMS and PAC-3 technologies and components are subject to export restrictions. Papperger expressed confidence that approval will be granted, adding that Rheinmetall is already investing in building rocket engine lines that will begin operating in 2026.