Rheinmetall has received a substantial order to provide artillery ammunition support to Ukraine, valued at around €142 million ($152 million).
The scope of the order encompasses tens of thousands of complete 155mm artillery shells, covering the entire assembly, including the projectile, fuse, propellant, and primer for ignition.
This substantial agreement is made in support of a NATO partner nation’s commitment to bolster Ukraine’s defensive capabilities through long-term military aid.
The artillery shells are slated to be manufactured by Rheinmetall Expal Munitions, the conglomerate’s recently acquired Spanish subsidiary. Deliveries of the ammunition are expected in 2025, while an earlier order for approximately 40,000 rounds for Ukraine is scheduled for production and delivery in 2024.
Notably, in mid-October 2023, the German government also placed a significant order with Rheinmetall Expal Munitions for over 100,000 rounds of 155mm ammunition allocated for Ukraine, along with additional DM 121 high-explosive shells, amounting to a value in the mid-three-digit million-euro range.
The current surge in demand for artillery ammunition extends beyond Ukraine’s requisites, encompassing the urgent need to restock the depleted ammunition reserves of Germany, NATO, and EU member states. Rheinmetall has outlined plans for a substantial boost in ammunition production capacity in 2024 across its facilities in Germany, Spain, South Africa, and Australia, aiming to raise annual output capacity to approximately 700,000 artillery rounds.
Moreover, Rheinmetall currently maintains multiyear framework contracts, valued at over €1 billion, to supply the German Bundeswehr with several hundred rounds of artillery ammunition.