The planned German operation is linked to Lockheed Martin’s move to allocate production capacity to the Precision Strike Missile, or PrSM. Papperger said Lockheed Martin needs additional space as it prepares to install a PrSM production line.
“The Lot 8 should be produced in Germany,” Papperger told analysts during Rheinmetall’s second-quarter 2026 earnings call. He said the plan had been discussed directly with Lockheed Martin’s CEO.
Rheinmetall expects to build the required production line next year and begin manufacturing ATACMS Lot 8 in late 2027. Papperger did not disclose the expected investment, production capacity or potential order value.
“We build up the production line next year, and we want to produce next year, starting end of the year with the Lot 8,” Papperger said. “We see a lot potential also in Europe to produce the ATACMS.”
The timeline indicates that the programme remains at an early industrial stage. Papperger said Rheinmetall may need to wait until 2028 before recording sales from European ATACMS production.
The opportunity has not been included in Rheinmetall’s current financial planning. Papperger said the group only incorporates programmes when management has sufficient confidence that they will proceed.
“This is not in the plan at the moment, for sure,” he said. “We only do something in the plan where we are relatively safe.”
Papperger presented the Lockheed Martin arrangement as part of Rheinmetall’s wider strategy of building missile capabilities through international industrial partnerships. The group is pursuing several programmes with different partners while retaining specific production and sales responsibilities in each case.
“The ATACMS is with Lockheed,” Papperger said when describing how Rheinmetall is dividing work among its missile partners. He added that the company is seeking to involve additional industrial participants where required by customers.
The ATACMS plan adds another potential growth line to Rheinmetall’s expanding missile portfolio. Papperger said he expects the missile business to grow faster than the company previously forecast, reflecting a shift in Rheinmetall’s expected sales mix through 2030.
