By Joe Stonor
Rheinmetall led German defense stocks higher Wednesday after a report said that Germany is pushing to partner with the U.S. to build more weapons domestically.
Shares in the German defense company jumped 5.7% to 1046.6 euros, while Munich-based Hensoldt gained 4.1%. Renk and MTU Aero Engines rose 4% and 1.7%, respectively.
German officials are trying to negotiate a co-production deal with their U.S. counterparts in time for next week's NATO summit in Ankara, Turkey, the Financial Times reported, citing unnamed sources.
Such a deal would see German and U.S. industry partnering. Germany's entreaties have been more warmly received by the U.S. than officials anticipated, an unnamed source told the FT.
Depleted by the war with Iran, U.S. missile stockpiles are running low, The Wall Street Journal previously reported, citing people with knowledge of the Trump administration.
Coproduction of Tomahawk and PAC-3 missiles are among areas under discussion, the FT reported.
As Germany's largest defense contractor, Rheinmetall would be well-placed to benefit from a trans-atlantic agreement. In April 2025, the Dusseldorf-based group and U.S. giant Lockheed Martin agreed to produce a missile and rocket manufacturing center in Germany, expanding a partnership dating back to June 2024.
"We have huge programs on the missile side because the U.S. want to produce much more missiles. Rheinmetall is a component producer for missiles in the United States," Rheinmetall Chief Executive Armin Papperger told an investor's conference call in May.
Write to Joe Stonor at josephmichael.stonor@wsj.com