US Negotiating Missile Co-Production Deal with Germany and European Allies

The United States is engaged in negotiations with Germany and several other European nations to establish joint production of Raytheon’s AIM-120 AMRAAM missiles, as well as a maintenance hub for Lockheed’s PAC-3 Patriot missiles, located in Europe, according to a source who spoke with Reuters.

The source, who requested anonymity, said the involved countries are expected to sign a statement of intent at a NATO Industry Forum being held on the sidelines of the military alliance’s summit in Ankara on Tuesday.

Should both initiatives move forward, they could relieve pressure on Raytheon and Lockheed Martin production lines in the United States, allowing those companies to scale up domestic manufacturing.

The weapons at the center of these talks are in heavy demand. PAC-3 missiles, used in Patriot air defense systems, and AIM-120C-8 missiles — which are deployed through NASAMS air defense platforms and F-16 fighter jets — are both being relied upon heavily by Ukraine as it continues to defend against Russian military attacks following Moscow’s full-scale invasion in 2022.

President Donald Trump has repeatedly taken aim at European allies over their dependence on American security guarantees, pushing them to increase defense spending and purchase more U.S.-made military equipment. He has also, on occasion, threatened to withdraw the United States from NATO altogether.

In mid-June, Trump invoked the Defense Production Act in an effort to address bottlenecks in weapons supply and munitions production chains.

That decision came amid mounting concern in Washington over whether U.S. weapons manufacturers can keep pace with demand, particularly as conflicts in both Ukraine and against Iran have drawn down American arms stockpiles. Trump has also expressed support for co-production arrangements between the U.S. and European partners.