Rheinmetall expects its first cruise missile order by the end of 2026 or early 2027 as joint ventures with Destinus and Lockheed Martin approach final signature. The Rheinmetall-Destinus Strike Systems venture will manufacture cruise missiles and ballistic rocket artillery at German facilities to address NATO supply shortages.
What's happening
- Rheinmetall and Destinus are finalizing Rheinmetall Destinus Strike Systems, a 51/49 joint venture subject to regulatory approval, to manufacture cruise missiles and ballistic rocket artillery.
- First cruise missile orders are forecast for year-end 2026 or early 2027, according to Rheinmetall CEO Armin Papperger.
- A separate Lockheed Martin venture will focus on artillery rockets and is also nearing final signature, subject to U.S. and German government approval.
- Destinus will produce core systems and components in the Netherlands and elsewhere in Europe while Rheinmetall adds production and qualification capacity at German facilities.
Why it matters
- NATO faces worrying missile stock shortages, with bottlenecks in rocket motors and warheads limiting European production capacity across Germany and allied nations.
- The ventures expand European missile and rocket manufacturing independent of U.S. sole-source production, building redundancy in the defense supply chain.
- Two parallel joint ventures with Lockheed Martin strengthen Rheinmetall's position in Europe's growing rocket and missile market while addressing capacity gaps.
Going deeper
- Rheinmetall and Destinus announced their agreement in April 2026, with the joint venture expected to establish operations in the second half of 2026.
- Rheinmetall and Lockheed Martin have collaborated on the GMARS multiple rocket launcher since 2023, establishing a foundation for expanded missile manufacturing cooperation.
- The ventures complement each other: Destinus handles core systems development while Rheinmetall provides manufacturing scale and German industrial capacity.
The fine print
- Rheinmetall-Destinus Strike Systems is subject to regulatory approval before establishment.
- The Lockheed Martin venture requires approval from both U.S. and German governments.
- Terms of ownership, investment and financing for both ventures remain undisclosed.
Source: defence-industry.eu · Sep 27, 2026 · Drafted with Claude, reviewed by Industrial Base Alpha.
