US in talks on Europe missile co-production, source says

The U.S. is in talks with Germany and other European nations about establishing co-production of Raytheon's AIM-120 AMRAAM missiles and a maintenance facility for Lockheed's PAC-3 Patriot missiles in Europe, a source told Reuters.

If implemented, both projects could free up capacity at Raytheon RTX.N and Lockheed Martin LMT.N factories in the United States and enable the U.S. defence giants to ramp up production at home.

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.

Both PAC-3 missiles for Patriot air defence units and AIM-120C-8 missiles, launched by NASAMS air defence systems as well as by F-16 fighter jets, are in high demand in Ukraine where Kyiv has been fighting off Russian attacks since Moscow's full-scale invasion in 2022.

U.S. President Donald Trump has repeatedly criticised European allies for relying on the U.S. for their security, while pressing them to boost defence spending and buy more U.S. equipment. He has also threatened at times to pull Washington out of NATO.

In mid-June, Trump invoked the Defense Production Act to ​address constraints in weapons supply and development ‌for munitions production and supply chains.

The move followed growing ​concern in Washington about the capacity of ​U.S. weapons manufacturers to meet demand, as both the war on Iran and the war in Ukraine have depleted U.S. arms stocks.

Trump has also encouraged co-production of U.S. weapons with Europe.

-Reporting by Sabine Siebold;Editing by Linda Pasquini/Reuters