Germany's Rheinmetall to supply 155mm artillery shells to foreign customer amid global demand.

On June 3, 2025, Rheinmetall Denel Munition, the South African subsidiary of the German company Rheinmetall, announced it had received two contracts from an undisclosed international customer for the delivery of 155mm artillery ammunition, for a combined value described as being in the high double-digit million euro range. The orders include the supply of Extended Range Full Bore (ERFB) 155mm artillery projectiles, associated propellant charges, and fuzes. Rheinmetall Denel Munition will handle all aspects of manufacturing internally, encompassing both energetic and mechanical components. These new orders are part of a broader surge in demand driven by the deteriorating global security situation, which has sharply increased the consumption and procurement of 155mm artillery ammunition.
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The global demand for 155mm ammunition has risen sharply since 2022, as both NATO and non-NATO countries seek to replenish stocks and supply partners involved in ongoing conflicts, particularly in Ukraine. (Picture source: Rheinmetall Denel Munition)

Rheinmetall Denel Munition emphasized that these orders were secured thanks to the reliability of its supply chain, the full production autonomy of all critical components, and the company’s capacity to deliver precision-guided artillery rounds at extended ranges. Rheinmetall is currently validating high-precision projectiles capable of achieving a range of 73 kilometers when fired from howitzers compatible with NATO’s Joint Ballistics Memorandum of Understanding (JBMOU). These capabilities are intended to increase both the survivability of artillery crews and the offensive reach of ground forces in high-intensity conflict scenarios. The ammunition ordered includes different variants, such as rocket-assisted projectiles and those with increased effect or specific dispersion patterns. The company also provides technical assistance intended to support the reliability and long-term performance of howitzers used by its partners.

Since 2022, Rheinmetall has expanded production capacity across its network in response to demand exceeding supply globally. Rheinmetall Denel Munition operates with a five-year production plan, regularly updated based on projected demand. Focusing heavily on scaling up its output and integrating new technologies into its manufacturing processes, this subsidiary plays a role in Rheinmetall’s goal to produce 1.1 million 155mm shells per year by 2027. With the global production of artillery shells struggling to match consumption levels, Rheinmetall Denel Munition’s internal capacity to produce rocket-assisted rounds, shells with increased effects, and even-scattering types positions it among the few entities capable of adapting quickly to specialized customer requirements.

The global demand for 155mm ammunition has risen sharply since 2022, as both NATO and non-NATO countries seek to replenish stocks and supply partners involved in ongoing conflicts, particularly in Ukraine. The global market for 155mm rounds, which stood at an estimated $4.2 billion in 2024, is projected to reach $7.5 billion by 2034. Therefore, both NATO and non-NATO countries are increasing output and investment in ammunition lines. The United States, for example, is expanding production from 14,000 shells per month in 2022 to a target of 100,000 per month by the end of 2025. This effort includes new production capacity at Scranton, Camden, and Mesquite, with General Dynamics operating the new Universal Artillery Projectile Lines facility. These facilities include automated guided vehicles, digital data capture, and flow-forming technology to streamline shell body production and allow scaling based on requirements. However, the production of charges remains below shell output, creating a bottleneck that continues to affect delivery rates.

In Europe, Rheinmetall remains at the center of production increases, aiming to reach an annual output of 1.1 million 155mm shells by 2027. In addition to its new €600 million site in Unterlüß, Germany, Rheinmetall is building new production sites in Lithuania, Latvia, Estonia, Denmark, and Ukraine. The EU's Act in Support of Ammunition Production (ASAP) allocated €500 million to increase ammunition capacity, but independent investigations suggest that actual production remains significantly below targets. Journalists and industry sources estimate that, as of early 2025, real annual output in Europe was closer to 580,000 shells, despite official statements suggesting a figure of 1.7 million shells. Shortages of explosives, nitrocellulose, and modular propellant charges, as well as limited long-term procurement agreements, and difficulties securing manufacturing equipment, continue to impact these projections. Companies have warned that increasing capacity without corresponding long-term orders carries financial risks that they are reluctant to absorb.

Ukraine’s own demand for 155mm shells has further strained the global market. While Ukraine has begun producing its own 155mm ammunition and entered joint production agreements with companies such as Rheinmetall and KNDS France, these efforts are still in early stages and insufficient to meet wartime requirements. This has led to continued reliance on Western deliveries, and the country has attracted over $900 million in defense investments from EU members, including Denmark, the EU Commission, the UK, and Norway. However, logistical and technical constraints continue to restrict large-scale output. Ukrainian forces currently use 500 to 600 NATO-standard 155mm artillery systems and employ over 20 different types of shells, requiring gun crews to recalibrate systems for each type. Defense officials estimate that current Ukrainian demand stands at 200,000 rounds per month, exceeding combined U.S. and EU production capabilities, and making continued foreign support essential. Rheinmetall’s recent contracts thus illustrate the central role of vertically integrated, technically self-reliant manufacturers in meeting such escalating global artillery ammunition needs.