The United States is discussing plans with Germany and additional European partners to establish local production of Raytheon’s AIM-120 AMRAAM missiles and to create a maintenance hub in Europe for Lockheed Martin’s PAC-3 Patriot missiles, a source told Reuters on condition of anonymity.
Officials involved in the talks say that moving some manufacturing and sustainment work to Europe could relieve capacity constraints at Raytheon and Lockheed Martin facilities in the United States. That, in turn, would allow the U.S. defence firms to redirect domestic capacity and increase output at home, the source added.
Delegations from the participating countries are due to sign a statement of intent at a NATO Industry Forum taking place on the sidelines of the military alliance’s summit in Ankara later on Tuesday, the source said. The announcement at the forum would reflect an initial political commitment rather than a final binding contract.
Demand for both PAC-3 interceptors used by Patriot air-defence batteries and AIM-120C-8 missiles - which are fired from NASAMS systems as well as F-16 fighters - remains strong. Ukrainian forces have continued to seek these weapons while defending against Russian attacks after Moscow’s full-scale invasion in 2022, the source noted.
U.S. President Donald Trump has repeatedly criticised European allies for depending on the United States for their security and has urged them to raise defence spending and purchase more U.S. equipment. He has at times also threatened to withdraw Washington from NATO.
In mid-June, the president invoked the Defense Production Act to try to tackle constraints affecting weapons production and the munitions supply chain. That move followed increased concern in Washington about whether U.S. weapons manufacturers could meet rising demand as both the war on Iran and the war in Ukraine have drained U.S. arms inventories.
Contextual note: The source that provided details asked to remain anonymous. The planned signing at the NATO Industry Forum is described as a statement of intent rather than a completed agreement.