Full Breakdown
US and European Nations Discuss Co-Production of AMRAAM Missiles and PAC-3 Maintenance Facility
7/7/2026, 10:34:49 PM
Core Initiative: Co-Production and Maintenance Facility Plans
A source familiar with the negotiations told Reuters that the United States is in talks with Germany and other European partners to co-produce Raytheon’s AIM-120C-8 AMRAAM missiles in Europe and to establish a Lockheed Martin-run maintenance centre for PAC-3 Patriot interceptors on the continent. The parties are expected to sign a statement of intent at a NATO Industry Forum on the sidelines of the NATO summit in Ankara.
Background & Context
Demand for both AIM-120 missiles—used by Ukraine’s F-16 fighters—and PAC-3 interceptors—critical to Kyiv’s defence against Russian ballistic missiles—has risen sharply since Russia’s full-scale invasion in 2022. In mid-June, President Donald Trump invoked the Defense Production Act to address U.S. supply-chain constraints, citing the simultaneous pressures of the wars in Ukraine and Iran. Trump has repeatedly urged European allies to increase defence spending and to purchase more U.S. equipment, warning that reliance on Washington could jeopardise NATO cohesion.
Key Figures & Stakeholders
- President Donald Trump – U.S. President, advocate of co-production and critic of European reliance.
- Mark Rutte – NATO General Secretary, emphasising allied support for Ukraine.
- Wladyslaw Kosiniak-Kamysz – Polish Defence Minister, co-signatory of the PAC-3 maintenance agreement.
- Jay Pitman – President, Lockheed Martin International, highlighting industrial cooperation.
- Raytheon Technologies – Manufacturer of the AIM-120 AMRAAM.
- Lockheed Martin – Producer of the PAC-3 Patriot system.
- German Ministry of Defence – Expressed interest in joint PAC-3 production.
Timeline
- Mid-June 2024 – President Trump invokes the Defense Production Act.
- 1 July 2024 – Berlin requests permission for PAC-3 production on German soil.
- 7 July 2024 – NATO summit in Ankara; statement of intent signed; five NATO members (U.S., Poland, Germany, the Netherlands, Sweden) sign an intergovernmental agreement for a PAC-3 maintenance facility.
Data & Statistics
- The U.S. Army’s FY 2027 budget seeks funding for 2,798 PAC-3 MSE interceptors, a projected $12.2 billion purchase.
- Lockheed Martin received a $4.7 billion contract in April to triple PAC-3 MSE production capacity.
- An earlier €4 billion ($4.7 billion) deal signed in April covers delivery of older PAC-2 missiles to Ukraine beginning in 2027.
- Global demand for PAC-3 interceptors has risen sharply, prompting the new European maintenance centre.
Official Statements & Responses
NATO Secretary-General Rutte stressed that allies must keep delivering the equipment Ukraine requires and urged all partners to “pull their weight.” Polish Defence Minister Kosiniak-Kamysz described the maintenance centre as a step to expand allied capacity and accelerate servicing of interceptors. Lockheed Martin International President Pitman framed the agreement as strengthening the transatlantic defence industrial base and contributing to shared security. German officials indicated that co-production discussions remain ongoing, while U.S. officials highlighted the arrangement’s potential to free up production capacity at Raytheon and Lockheed Martin facilities in the United States.
Criticism & Opposition
President Trump has criticised European allies for over-reliance on U.S. security guarantees and for insufficient defence spending. Some analysts note that the agreement stops short of full joint production of PAC-3 missiles, diverging from earlier speculation about a broader European manufacturing role.
Conflicting Reports & Gaps
Initial media reports suggested a joint PAC-3 production line in Europe, yet the finalized agreement focuses solely on a maintenance and sustainment facility. Details on the specific European partners involved in the AIM-120 co-production effort remain undisclosed, and the timeline for any missile-production activities has not been provided.
Verbatim Quotes
- “Allies and NATO partners must continue to ensure Ukraine gets what it needs,” — Mark Rutte, NATO General Secretary
- “All Allies need to pull their weight, so that our support to Ukraine continues to flow.” — Mark Rutte, NATO General Secretary
- “Industrial cooperation strengthens the transatlantic defense industrial base and contributes to economic progress and shared security,” — Jay Pitman, President, Lockheed Martin International
- “The countries will sign a statement of intent at a NATO Industry Forum on the sidelines of the military alliance's Ankara summit later on Tuesday, said the source, who spoke on condition of anonymity.” — Anonymous source
What’s Next
The maintenance centre is slated to become operational within the next two years, providing in-region sustainment for PAC-3 interceptors. Parallel negotiations on AIM-120 co-production are expected to continue, with future NATO industry forums likely to address additional capacity-building measures for Ukraine’s defence needs.
