European Union Awards Rheinmetall €130M to Boost Ammo Production

Rheinmetall has received over €130 million in funding from the European Union to increase the production of ammunition.

More than a quarter of the total €500 million awarded by the EU under the Act of Support in Ammunition Production (ASAP) will be channeled into six projects by Rheinmetall AG's European subsidiaries, aimed at expanding the production of 155mm artillery ammunition and powder.

The program will support projects in Germany, Hungary, Romania, and Spain. ASAP marks the first EU funding initiative for the expansion of ammunition production, with corresponding grant agreements expected to be signed in May 2024.

"The importance of artillery is evident from Ukraine's battle to defend its country. European armed forces also need to replenish their stocks of artillery ammunition. We are ready for this and we are already working on it,” says Armin Papperger, CEO of Rheinmetall AG.

Rheinmetall has been increasing its production capacities since 2022, with the company aiming to produce up to 1.1 million artillery shells per year by 2027. Additionally, production targets include up to 1.5 million propellant modules and 3,000 tons of RDX explosives annually, starting in 2026.

Further tenders are expected in the future. In its recently published proposal for a European Defence Investment Programme (EDIP), the EU plans to promote the expansion of production capacities for other defense products.