Rheinmetall’s CEO, Armin Papperger, revealed that negotiations are underway to form a joint venture, with Rheinmetall expected to hold a 60% stake. “Sometimes it takes ten years to receive missiles from the United States, and that’s too long,” Papperger stated, highlighting the need for a more efficient European production base.
In early May, both companies signed a memorandum outlining the creation of a European “Center of Competence” dedicated to the production and distribution of missiles and missile systems. This centre is intended to strengthen European security and independence by locally producing critical defence equipment.
The facility will potentially manufacture several missile types, including ATACMS, GMLRS/GMLRS-ER, Hellfire, JAGM, and PAC-3 missiles. Production is expected to commence within 12 to 13 months, with final assembly also conducted at the European site.
Research and development will be jointly managed by Rheinmetall and Lockheed Martin, ensuring that intellectual property rights are retained within Europe. However, the project still requires approval from the U.S. government, which both companies are actively pursuing.
Papperger anticipates that missile engine production will begin next year, with full missile production starting in 2027. Production is expected to scale up significantly by 2028 and 2029, as Rheinmetall prepares to meet high European and Ukrainian demand for advanced missile systems.
Lockheed Martin is currently pausing ATACMS production as it increases output of the PrSM missile, which will eventually replace ATACMS in the U.S. arsenal. The partners are discussing transferring ATACMS production lines to Europe to fulfil existing U.S. contracts.
Rheinmetall’s CEO also noted that the new production facility would quickly reach full capacity, given the estimated yearly demand: 600-800 ATACMS, around 2,500 GMLRS, 5,000 Hellfire, 5,200 JAGM, and 250-300 PAC-3 MSE missiles. He emphasized that Ukraine’s current requirement for Patriot missiles would also significantly drive production efforts.
