Rheinmetall Warns ATACMS Production Expansion Will Be a Lengthy Process as America Works to Restore Depleted Missile Inventories

Summary

Rheinmetall has cautioned that scaling up ATACMS missile production through its partnership with Lockheed Martin will require significantly more than two years, highlighting the serious challenge the United States faces in restoring its depleted long-range precision missile stockpiles following the five-month conflict with Iran. The German defense company signed a memorandum of understanding with Lockheed Martin last month to jointly manufacture ATACMS missiles at its Unterluess facility in northern Germany, with production infrastructure set to be established next year and first revenues anticipated in 2028. Rheinmetall CEO Armin Papperger confirmed the joint venture has U.S. government backing and that the partners intend to target the global missile market, which he believes will remain robust for at least the next 15 years. Beyond missiles, Rheinmetall is also navigating other significant business developments, including a pending multibillion-euro Boxer armored vehicle contract with the German military worth €12.4 billion for Rheinmetall's share, expected to be signed by year-end. The company also revised its sales outlook downward after Germany canceled its F126 frigate program and continues to pursue a potential acquisition of Iveco's military truck business, though those talks depend on Leonardo's new CEO.