Investing.com -- Rheinmetall (ETR: RHMG ) and Lockheed Martin (NYSE: LMT ) have agreed to establish a missile and rocket manufacturing center in Germany.

The agreement, announced on Wednesday, expands the existing cooperation between Germany’s largest defense company, Rheinmetall, and its U.S. counterpart, Lockheed Martin. The two companies had previously signed a memorandum of understanding in June 2024.

The manufacturing center, under the leadership of Rheinmetall, will produce and distribute various types of rockets and missiles to Germany and other parts of Europe. The primary goal is to enhance Europe’s defense self-reliance, as stated by Rheinmetall.

This move comes at a time when European policymakers are striving to increase the continent’s production of essential military equipment. This increase is necessary to continue supporting Ukraine in its war against Russian occupation, replenish their stockpiles, and reduce dependence on U.S. weapons.

However, the plans for the center are still subject to approval by the U.S. and German governments.

Rheinmetall’s Chief Executive, Armin Papperger, has expressed that the arms manufacturer aims to play a significant role in the expanding European market for rockets and missiles, where considerable demand is anticipated.

Ray Piselli, vice president for international at Lockheed Martin, added that this agreement is a step toward assisting European customers in fulfilling their North Atlantic Treaty Organization commitments. By combining Rheinmetall’s extensive regional expertise with Lockheed Martin’s advanced missile technologies, they aim to create a robust foundation to meet evolving security needs.

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