Lockheed is ramping up production of PAC-3, HIMARS, and GMLRS missiles in Europe to meet growing military demand.

Since the war in Ukraine, Lockheed Martin has been stepping up its missile production (PAC-3, HIMARS, GMLRS), aiming for a 40% increase between 2024 and 2025, by launching industrial partnerships in Poland, Germany, the United Kingdom, and elsewhere. The company plans to locate strategic production lines in Europe (propulsion systems, launch tubes, assemblies). The aim is to reduce bottlenecks, speed up deliveries, and strengthen European industrial resilience, while introducing scalable technologies such as data link guidance and re-localization of maintenance.

Increased production of tactical and defensive missiles

Lockheed Martin expects a 40% increase in missile deliveries between 2024 and 2025 across its entire specialized portfolio (PAC-3, HIMARS, GMLRS, etc.).

• For the PAC-3, the production rate is set to increase gradually from around 300 units per year in recent years to 550 in 2023-24 and 650 by 2027, with the possibility of exceeding this figure.
• For HIMARS, the rate has increased from 48 to 96 units/year, and Lockheed anticipates production before firm orders in order to build up available stock.
• For GMLRS, production will reach 14,000 rockets/year this year.

A technical interpretation

A 40% ramp-up implies major adjustments: plant capacity expansion, specialized recruitment, automation. For example, reaching 14,000 rockets/year requires increasing the capacity of the machining, quality control, and assembly lines from 12,000 to 14,000 units, or +2,000 rockets/year. These volumes are dictated by operational pressure in Ukraine and NATO expectations.

Strategic industrial locations in Europe

Lockheed is embarking on industrial decentralization, driven by several agreements:

• Poland: PAC-3 MSE launch tubes (factory in Dęblin, 3,000 m²) officially delivered in April 2025.
• Germany: missile center of excellence in a joint venture with Rheinmetall, focused on ATACMS and PAC-3.
• United Kingdom: manufacture of Javelin sub-assemblies and ongoing discussions on PAC-3 and HIMARS.
• Spain: PAC-3 MSE industrialization confirmed in 2024.
• Italy, France, Israel: exploration of the production of solid propellants and engines (Avio, Roxel, Tomer).

Industrial challenges

Locating manufacturing reduces lead times, circumvents EU trade and financial restrictions, and responds to political pressure to “buy European.” It also strengthens security of supply by reducing dependence on rare US suppliers and creates highly skilled jobs in host countries.

Technological innovation and operational efficiency

Lockheed is integrating new data links, enabling, for example, a missile to be guided via F-35 or satellite reconnaissance, eliminating the need for a costly on-board seeker.
This innovation reduces the cost of the interception system by replacing an active Ka-Band radar (~$300,000 per unit) with a less expensive data link (~$50,000), while maintaining accuracy.
Advances also include upgrading solid motors to two-pulse (PAC-3 MSE), increasing range and altitude of interception.

Tactical impact

These technologies enable defense allies to respond to fast-moving ballistic threats or guided rockets from flight to flight. By integrating hit-to-kill capability with networked guidance, interception effectiveness is increased many times over (several megajoules of favorable kinetic energy) and collateral damage is limited.

Geopolitical and capability implications

This industrial positioning gives Europe partial autonomy over anti-missile systems.
-The EU is allocating nearly €150 billion in loans and grants to make up its security deficit, with a “local first” industrial component.
-The Sky Shield initiative in Germany provides for a multi-layered defense (Patriot, Arrow 3, IRIS-T, etc.) that will evolve by 2030.
-The introduction of F-35 jets (13 European countries), missiles, and helicopters enhances NATO interoperability and resilience.

However, these efforts have their limits:

• European industrial fragmentation remains high.
• National priorities diverge (France via MBDA/Thales, Germany via Rheinmetall).
• “Buy European” policies risk partially excluding US manufacturers, hence Lockheed’s proactive approach.

Logistical support and maintenance in the field

Lockheed is not limited to production: it is setting up maintenance centers (e.g., HIMARS in Romania with Aerostar). Similar projects are planned in Italy, Poland, Bulgaria, and Greece.
These centers reduce mean time to repair (MTTR), limit travel to the US, and enable real-time support for forces deployed in sensitive areas.

Challenges and prospects

Challenges

• Technical constraints: creating new production lines (e.g. in Poland) requires two to three years to reach adequate production rates.
• High costs for machine tools, certifications, and personnel.

Opportunities

• Strengthening the transatlantic alliance, ensuring that supply chains remain fluid and close to the field.
• Investor motivation: Rheinmetall has seen its share price rise by +250% since November.
• Political integration: the EU aims to direct 50% of its contracts to local industry within five years.

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