Focus: Germany's Rheinmetall Expands Artillery Ammunition Production as War in Ukraine Drives Global Demand.

German Company Rheinmetall AG, one of Europe’s leading defense manufacturers, is accelerating efforts to become the cornerstone of NATO's artillery supply chain by dramatically increasing its production capacities in both Germany and Spain. In a major announcement on April 17, 2025, CEO Armin Papperger confirmed in an interview with German Newspaper Handelsblatt that the company will scale up its artillery shell output at its Unterlüß facility in Lower Saxony, Germany, to 350,000 rounds per year—up from the previously planned 200,000. This site, now set to become Europe’s second-largest artillery manufacturing plant, reflects Rheinmetall’s long-term strategic response to the evolving security landscape and the war in Ukraine.
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German Company Rheinmetall is set to significantly boost production of 155mm artillery shells, with its Unterlüß facility in Germany expected to manufacture up to 350,000 rounds annually. (Picture source: Rheinmetall)

The €600 million investment in the Rheinmetall Unterlüß facility in Germany will not only ramp up production of NATO-standard 155mm artillery shells but also support the manufacturing of 1,900 tonnes of RDX explosive annually. Additionally, the site has capabilities to produce rocket propulsion systems and potentially warheads. With around 500 workers, Unterlüß is a vital industrial hub for Germany’s and NATO’s defense preparedness.

However, Germany is only part of the story. In August 2023, Rheinmetall finalized a $1.3 billion acquisition of Spanish defense company Expal Systems, significantly expanding its footprint in the European munitions industry. The Spanish site, still operating actively and undergoing expansion, is expected to produce up to 450,000 artillery shells per year—making it the largest facility of its kind in Europe. Like its German counterpart, the Spanish plant is focused on the 155mm caliber, which has become the linchpin of modern artillery operations in NATO and Ukraine alike.

This dual-hub strategy, combining the capabilities of Germany and Spain, reflects Rheinmetall’s ambition to secure Europe's long-term military supply chain. The acquisition of Expal Systems not only adds capacity but also diversifies production locations, ensuring logistical resilience and faster delivery times across the continent. Together, these plants represent a powerful response to the growing need for scalable, high-volume artillery shell production in an increasingly unstable world.

The urgency behind Rheinmetall’s expansion is rooted in the lessons learned from the war in Ukraine. Artillery has played a decisive role in the conflict, with both Ukrainian and Russian forces relying heavily on sustained shellfire to control territory and weaken enemy positions. Estimates suggest that tens of thousands of artillery rounds are fired daily, placing immense pressure on global supply chains. Western countries, including many in NATO, have struggled to keep pace with Ukraine’s demand while also maintaining their own strategic reserves.

This shortage has revealed the fragile state of peacetime ammunition production, prompting a wave of rearmament initiatives across Europe. Rheinmetall’s response—expanding production in multiple countries, including Lithuania, Latvia, Estonia, Denmark, and soon Ukraine—positions the company as a central player in rebuilding the continent’s defense manufacturing infrastructure. The Ukrainian plant is expected to be operational by 2026, further tightening the industrial link between Kyiv and its Western allies.

Moreover, Rheinmetall is in talks with Volkswagen to convert the Osnabrück automotive plant into a defense manufacturing facility, highlighting the company’s creative approach to scaling up production by repurposing existing industrial assets.

For Army Recognition, Rheinmetall’s massive artillery expansion is a powerful testament to how the defense industry is adapting to modern threats. The combined production capacities of Unterlüß and Spain will not only address immediate battlefield needs but also ensure Europe’s long-term readiness for future conflicts. As artillery warfare once again dominates the headlines, ensuring a reliable, uninterrupted supply of ammunition has become a cornerstone of national and alliance-level security policy. Rheinmetall’s role in this transformation marks a pivotal moment for the European defense industry—and for the future of warfare itself.