Rheinmetall Plans Major Expansion of Ammunition Production in Ukraine

German defense company Rheinmetall aims to double the planned production capacity of 155-mm artillery shells at its upcoming plant in Ukraine — reaching up to 300,000 shells annually.

According to CEO Armin Papperger, this move is part of Ukraine’s long-term strategy to reduce dependence on foreign suppliers and strengthen domestic defense capabilities.

Challenges to Implementation

Despite the ambitious target, the project faces:

• Bureaucratic delays in Ukraine, slowing the plant’s construction.

• Funding shortages that could hinder production scale-up.

The plant is expected to begin operations in 2026 under a contract signed with the Ukrainian government in 2024, which covers full technical equipment and commissioning.

Rheinmetall’s Role in Ukraine’s Defense Industry

• The German defense group is working on three planned factories in Ukraine, intended to operate regardless of wartime conditions.

• Cooperation with Ukroboronprom includes setting up artillery ammunition production facilities in Ukraine.

• Rheinmetall is also increasing global gunpowder output by 50% by 2028 to meet rising demand.

Strategic Impact

If realized, the expansion could make Ukraine one of Europe’s largest artillery shell producers, enhancing its military sustainability and creating a strong industrial base for both domestic defense and potential export markets.

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