US and Germany Sign Pact to Expand Munitions Production

US Defense Secretary Pete Hegseth and German Defense Minister Boris Pistorius signed a letter of intent at the Pentagon on September 15 and 16, 2026, to deepen bilateral defense industrial cooperation. The agreement establishes a political framework to expand the joint development, production, and licensed manufacturing of modern weapon systems and ammunition to address dwindling stockpiles and strengthen NATO readiness.

Under the pact, Germany will serve as an additional production hub for American munitions to alleviate demand overwhelming US firms. Production of PAC-3 MSE interceptors is scheduled to begin later this year at the MBDA plant in Schrobenhausen. The leaders also discussed the German purchase of Tomahawk cruise missiles and potential collaborations on ATACM projectiles, Stinger surface-to-air missiles, and AMRAAM missiles. This cooperation aligns with the US War Department's acquisition transformation strategy and Germany's Procurement Acceleration Act.

Germany has increased defense spending by 25 percent since last year, targeting 5 percent of its gross domestic product by 2035. As part of these strengthening ties, Germany is scheduled to take delivery of its first F-35A fighter jets in Texas this Friday. While the deal aims to counter threats from Russia, the French Republic has criticized the agreement, arguing that using European funds to produce US-designed weapons undermines European defense autonomy.