European Missile Hub Launched by Germany and U.S. to Supply NATO Forces.

On May 8, 2025, German Company Rheinmetall and Lockheed Martin from United States formalized the creation of a new missile production hub in Germany, focused on supplying NATO forces with critical guided weapons such as GMLRS, ATACMS and Hellfire missiles. The announcement follows the signing of a Memorandum of Understanding and confirms the establishment of a European center of excellence for missile manufacturing and distribution. Rheinmetall will lead the joint venture. This initiative aligns with the accelerating demand for munitions in Europe, aiming to bolster collective defense capabilities and reinforce European industrial sovereignty in the defense sector.
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German Company Rheinmetall and Lockheed Martin from U.S. formalize a strategic joint venture to establish a European missile production hub in Germany, aimed at supplying NATO with precision munitions. (Picture source: Army Recognition Group)

The upcoming facility, located in Unterlüß, Germany, will begin construction of its own solid rocket motor (SRM) plant in June 2025. According to the joint planning presented publicly by Rheinmetall during its Q1 2025 investor call, the site will have an estimated annual capacity of 10,000 missiles, including core NATO-compatible munitions: GMLRS, ATACMS, and Hellfire. GMLRS, widely used in the HIMARS system, offers highly accurate medium-range strike capability. ATACMS brings long-range tactical depth, while Hellfire air-to-ground missiles are essential in both rotary-wing and drone-based precision engagements.

Initiated to address the increasing imbalance between missile demand and industrial output across NATO countries, exacerbated by the war in Ukraine, this venture represents a deliberate step toward rearming European inventories and building resilience against future crises. The joint Rheinmetall-Lockheed strategy also seeks to ensure more predictable and autonomous missile supplies within the EU, at a time when U.S. production alone has struggled to keep pace with both domestic and international obligations.

Rheinmetall’s May 8, 2025 earnings call visually reinforces these goals. It explicitly labels the joint venture as a “European center of excellence” for the production and distribution of a wide spectrum of missiles. It highlights four key ambitions: improving security and autonomy in Europe, leading the project under Rheinmetall’s German management, launching SRM production in Unterlüß, and achieving a 10,000 missile per year production goal. The imagery of four missiles further illustrates the operational focus, while the messaging reflects broader NATO priorities: security, industrial resilience, and rapid deployment capacity.

In budgetary terms, while precise figures remain undisclosed, Rheinmetall’s involvement suggests multi-year capital expenditures in the hundreds of millions of euros, aligned with its recent investments in ammunition plants and vehicle production lines. The industrial scope, covering SRMs and full missile assembly, reflects not only economic scaling ambitions but also supply chain integration objectives.

This German-American partnership is not the first of its kind. Previously, Lockheed Martin and Rheinmetall collaborated on the GMARS (Global Mobile Artillery Rocket System), a modular multiple launch rocket system compatible with NATO munitions and positioned as a complementary alternative to HIMARS in European theaters. By comparison, this missile production venture is more vertically integrated, encompassing propulsion, assembly, and eventually distribution within Europe itself. The effort marks a shift from platform development to full-spectrum missile ecosystem establishment.

Foreign Military Sales (FMS) data confirms that Europe remains a major customer for U.S.-origin missiles. Poland, Romania, and Germany have already received GMLRS via HIMARS platforms. ATACMS is now increasingly discussed for future transfer to selected NATO states under restricted use clauses. Meanwhile, France and the Czech Republic have acquired Hellfire missiles, primarily for use with attack helicopters and drones. Forward-looking estimates from industry suggest growing European demand will drive more localized FMS delivery logistics and offset production, trends that the Rheinmetall-Lockheed plant is designed to capitalize on.

In a broader missile production context, Europe is also scaling up its domestic capabilities. MBDA is expanding its production of MMP and Akeron systems, while Kongsberg’s partnership with Nammo for NSM and JSM missiles complements the landscape. However, none match the volume or breadth of munitions as this transatlantic venture, which will unify U.S. designs and European assembly under a single framework.

The joint Rheinmetall-Lockheed Martin missile production initiative in Germany is not just a new industrial project, it is a keystone of NATO’s long-term security architecture. By anchoring missile production in Europe, the alliance improves its readiness, strengthens industrial defense independence, and assures its capability to respond rapidly to new threats. This is not only about output, but about strategic continuity and deterrence in an age of accelerating military pressure on NATO’s eastern flank.