Germany has reportedly asked the U.S. for permission to ramp up production of American weapons on its own turf. According to the Financial Times, Berlin is pushing for a co-production agreement ahead of the upcoming NATO summit in Ankara, as part of a broader European strategy to leverage its defense-industrial base and patch up strained ties with Washington.

German and U.S. industries are already talking about “joint production concepts,” covering “anything” that could strengthen both countries' defense capabilities. That includes co-producing long-range Tomahawk missiles and PAC-3s—the most advanced missiles used in Patriot air-defense systems.

U.S. government and industry responses have been more positive than expected, German officials say. They see Germany's vast industrial base—including its auto sector—as a win-win for both Europe and the U.S.

Manufacturing key U.S. weapons in the EU's biggest economy could help Washington tackle capacity issues that have been worsened by the war in Iran. It could also speed up weapons deliveries to countries like Germany, which are rushing to re-arm in response to Russia's full-scale invasion of Ukraine, sources told the publication.

Of course, Washington's approval is required before any sensitive U.S. technology can be made outside the United States. The White House didn't immediately respond to requests for comment.

Germany Reaffirms U.S. Defense Ties

Speaking after a cabinet meeting in Berlin on Wednesday, German Defense Minister Boris Pistorius made it clear that continued defense cooperation with the U.S. is non-negotiable. “We want to become more independent, but we don’t want to do without closer cooperation with the U.S.,” he said.

Chancellor Friedrich Merz added that Germany is accelerating efforts to strengthen its own defense, arguing that Europe must take greater responsibility for its security, freedom, and prosperity. Pistorius echoed that, saying Germany has made significant progress in improving military readiness over the past few years.

NATO Secretary General Mark Rutte, who also attended the cabinet meeting, noted that “when it comes to the defense of Ukraine, the U.S. is still indispensable.”

Rheinmetall Collaborates With U.S. Defense Companies

This push for co-production isn't happening in a vacuum. In June 2025, defense tech firm Anduril Industries and German defense giant Rheinmetall AG (OTC: RNMBY) teamed up to co-develop three core defense systems for European deployment. The partnership integrates Anduril’s Barracuda low-cost autonomous air vehicle and Fury high-performance multi-mission aircraft into Rheinmetall’s digital sovereignty framework called “Battlesuite.” The companies also committed to exploring solid rocket motor production for European defense using Anduril’s manufacturing approaches.

Earlier, in April 2025, Lockheed Martin Corp. (NYSE: LMT) and Rheinmetall expanded their partnership by extending a 2024 memorandum of understanding to set up a Germany-based European center of excellence for manufacturing F-35 fuselage center sections as part of the global F-35 supply chain. The two companies also teamed up in 2023 to develop the GMARS multiple rocket launcher, which debuted at the 2024 Eurosatory defense exhibition.

This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.

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