"We're here to take another strong step in advancing our defense industrial cooperation between the United States and Germany," Hegseth said in his welcoming remarks at the Pentagon, Anadolu Agency reported.

Hegseth has described NATO 3.0 as a broader effort to strengthen the alliance’s military capabilities, increase defense production and shift more responsibility for Europe’s conventional defense to European allies.

At a NATO meeting in Brussels in June, he announced a six-month review of American troop deployments in Europe, urging NATO allies to increase their defense spending and reduce their dependency on US military support.

"Today, we see major progress that no one would have thought possible," Hegseth said, according to the Pentagon.

"Germany today is moving closer to fulfilling the 5% — leading the way on the spending commitment it made at The Hague Summit last year. But as we talked about, defense spending is just the first step."

Pistorius, for his part, said Germany supports greater European responsibility for NATO’s conventional defense and pointed to the country’s increased defense spending and military investments.

"Germany is strengthening its defense capabilities and acts as a driving force in Europe," he said. "We Europeans want to take some of the burden off the US and assume primary responsibility for conventional deterrence in Europe."

The two defense chiefs also signed an agreement intended to align the Defense Department’s acquisition transformation strategy with Germany’s Procurement Acceleration Act.

Hegseth said the alignment could expand opportunities for joint development, production, licensed manufacturing and maintenance and sustainment.