It appears that plans to establish joint ATACMS production at Rheinmetall’s facilities in Germany are still awaiting government approval. However, this process is at an advanced stage and has Washington’s support.
Rheinmetall CEO Armin Papperger made this statement in an interview with Reuters. From Defense Express we would like to note that a month ago, German and American defense giants Rheinmetall and Lockheed Martin signed a memorandum of understanding on launching ATACMS ballistic missile production in Germany.
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Localization involves the production of solid fuel and other components. In its official statement, the company noted that it plans to launch the production line as early as 2027.
At the same time, it would be mistaken to assume that launching this production will immediately meet demand for ballistic missiles and quickly replenish U.S. stockpiles, which have been depleted by strikes on Iran.
In particular, as Armin Papperger stated, Rheinmetall does not expect to receive its first revenue from ATACMS production until 2028. In other words, even if production begins in 2027, that does not mean the missiles will be delivered to the customer immediately. They will not be delivered until a year later.
Moreover, the start of deliveries does not mean that demand has been fully met, as the required number of missiles still needs to be produced to satisfy the customer's requirements. In the case of the United States, that demand is particularly significant.
"That won't happen in two years. It will take much longer," Rheinmetall CEO added. In other words, the combined production capacity of Germany and the U.S. will not be enough to replenish U.S. stockpiles in the foreseeable future.
Armin Papperger also noted that the market for these ballistic missiles, which were first developed in 1986, will remain viable for another 15 years. In other words, production is expected to continue at least through the 2040s.
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