Rheinmetall receives EU funding to boost artillery production for Ukrainian war effort
Rheinmetall will produce thousands of artillery shells for Ukraine. (Photo: Ukraine MoD)
Rheinmetall has contracts to produce hundreds-of-thousands of artillery shells for Ukraine and new funding from the EU will boost the company’s manufacturing capability.
Rheinmetall will receive €130 million (US$141 million) from the EU under the Act of Support in Ammunition Production (ASAP) to expand the production of 155mm artillery ammunition and powder.
The funding will be committed to support projects in Germany, Hungary, Romania and Spain by Rheinmetall AG’s European subsidiaries, with the corresponding grant agreements expected to be signed in May 2024.
Rheinmetall has been increasing its production capacities since the invasion of Ukraine by Russia more than two years ago and the company will aim to produce up to 1.1 million artillery shells per year by 2027. Up to 1.5 million propellant modules and 3,000 tonnes of RDX explosives will be produced annually starting in 2026.
Further tenders will be expected in the future. In its recently published proposal for a European Defence Investment Programme (EDIP), the EU outlined plans to promote the expansion of production capacities for other defence products.
In addition to this award MBDA has nominated its Enforcer missile production ramp up programme, dubbed Enforcer Production Increase Campaign (EPIC), for funding within the European Commission’s ASAP programme.
The portable, shoulder-launched, lightweight, high-precision Enforcer is a fire-and-forget missile system with an operational range up to 2km.
Related Equipment in Defence Insight
More from Land Warfare
-
![AUSA 2025: KNDS France to bid for US Army requirement]()
AUSA 2025: KNDS France to bid for US Army requirement
The CAESAR Mk II, which was debuted internationally at Eurosatory last year, is a step up from the first model which has seen combat in Ukraine and the Middle East.
-
![AUSA 2025: IAI reveals robotic route clearance system]()
AUSA 2025: IAI reveals robotic route clearance system
The Elta 6631 has been developed using the experience of the Israel Defense Forces in route proving, and can be customised for various customers and circumstances.
-
![AUSA 2025: Boeing wins $2.7 billion PAC-3 production contract as it explores supply chain expansion]()
AUSA 2025: Boeing wins $2.7 billion PAC-3 production contract as it explores supply chain expansion
Boeing will work with prime contractor Lockheed Martin to boost PAC-3 production capacity to hit higher delivery targets, as demand for the interceptors continues to surge.
-
![AUSA 2025: AM General “on target” for JLTV full-rate production in 2026 as it uncrews a Humvee]()
AUSA 2025: AM General “on target” for JLTV full-rate production in 2026 as it uncrews a Humvee
AM General believes it has completed working with customers for the Joint Light Tactical Vehicles to reach a final version of the vehicle and to prepare to begin producing vehicles under full rate production.
-
![AUSA 2025: Honeywell debuts SAMURAI CUAS system after demonstrations and trials]()
AUSA 2025: Honeywell debuts SAMURAI CUAS system after demonstrations and trials
The system is designed to operate against uncrewed aerial systems (UAS) and has been demonstrated for the US Army and Department of Defense. It is designed to be agnostic and provide software and C2 systems in support of a range of sensors and effectors.
