[Discussion] U.S., Germany Sign Pact to Expand Joint Defense Production

U.S. and Germany Sign Defense Industrial Agreement

U.S. Secretary of War Pete Hegseth and German Defense Minister Boris Pistorius signed an agreement Sept. 15, 2026, intended to expand defense industrial cooperation between the two countries.

The agreement aligns the War Department’s acquisition transformation strategy with Germany’s Procurement Acceleration Act. According to Hegseth, the framework is intended to increase opportunities for joint development, production, licensed manufacturing, maintenance and sustainment.

The officials said the objective is to expand production capacity and deliver military systems to U.S., German and allied forces more quickly and at greater scale. No individual programs, contract values or implementation deadlines were announced.

NATO Spending and Industrial Capacity

The agreement followed Pentagon discussions covering increased European defense spending, NATO force contributions and the U.S. and German defense industrial bases.

Hegseth placed the talks within what he calls “NATO 3.0,” a proposed approach emphasizing higher defense expenditures, troop readiness, weapons production and force contributions. President Donald Trump has called for NATO members to spend 5% of gross domestic product on defense.

Hegseth said Germany was moving toward the 5% commitment made at the previous year’s Hague Summit. He added that spending increases would need to be accompanied by higher production on both sides of the Atlantic.

The secretary also linked the agreement to the U.S. “arsenal of freedom” plan, which he described as an effort to expand domestic manufacturing, rebuild industrial capacity and increase production of U.S.-made defense equipment.

Germany Reports Spending Increase

Pistorius said Germany had increased defense spending by 25%, with expenditures equivalent to about $147 billion. He described the increase as part of a broader effort by European allies to assume primary responsibility for conventional deterrence in Europe and reduce the burden on the United States.

Germany is purchasing new weapon systems from U.S. suppliers while expanding its role within NATO, Pistorius said. He cited German support for Ukraine and the deployment of an armored brigade in Lithuania as contributions to NATO’s eastern flank.

Pistorius also identified space systems and deep-precision strike capabilities as areas of German technology investment. Germany is scheduled to roll out its first F-35A aircraft later in the week, according to the release.

Production and Sustainment Priorities

Both officials identified increased production capacity as the agreement’s central aim. Hegseth said coordinating the countries’ acquisition and procurement policies could support shared manufacturing and sustainment arrangements for allied systems.

Pistorius said the framework would provide a basis for closer bilateral armament cooperation after more than 70 years of Germany’s NATO membership. The release did not identify specific weapons, facilities or companies that would participate.

European Role in NATO

Pistorius said Germany supports a larger European role in NATO while maintaining the transatlantic alliance. He characterized the effort as a shift in burden-sharing rather than a reduction in U.S.-European defense ties.

“Together with our allies, we are working towards a stronger Europe and a stronger NATO,” Pistorius said, adding that Germany and the United States would continue cooperating on collective defense and resilience.

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