The North Atlantic Treaty Organization (NATO) and its member states have significantly expanded defense industrial capacity in response to heightened security challenges and sustained demand for ammunition and weaponry. A central focus of this expansion has been the production of 155-millimeter artillery shells, which are widely used by NATO forces and allies. According to NATO leadership, European production of these shells has increased roughly sixfold over the past two years as part of efforts to strengthen readiness and supply lines for ongoing security commitments.
Growth in Ammunition Production Capacity
At the opening of a major new artillery munitions factory in Unterlüß, Germany, NATO Secretary General Mark Rutte highlighted the rapid scale-up of shell manufacturing. The facility, operated by German defense manufacturer Rheinmetall, is the largest of its kind in Europe and is central to the region’s industrial mobilization. When reaching full planned capacity, this plant is expected to produce up to 350,000 155 mm artillery shells per year, with production ramping up through 2027.
Rutte noted that overall European ammunition production is expected to reach around 2 million rounds annually by the end of 2025, up from significantly lower levels just two years earlier. This jump reflects coordinated investments by NATO members to broaden industrial output and reduce reliance on limited stockpiles or external suppliers.
New Facilities and Allied Investments
In addition to the German plant, further expansions and new facilities are underway across NATO partner countries:
- Bulgaria: Rheinmetall has announced plans to build a NATO-standard ammunition production line in Bulgaria, which would further boost regional capacity for 155 mm shells.
- Lithuania: A new facility under development is expected to produce tens of thousands of shells annually once operational, adding to Baltic defense industry capability.
- Romania: Plans are moving forward for a large propellant factory near Ukraine aimed at producing components critical for artillery and munitions.
These projects reflect a broader shift within NATO toward strengthening defense industrial bases across multiple nations, ensuring more resilient supply chains and less dependency on a single country or production hub.
Strategic Context and Industry Impact
The drive to expand ammunition production has been shaped by sustained demand linked to global security challenges, especially the war in Ukraine, where 155 mm artillery shells are in continual use by Ukrainian and NATO-aligned forces. NATO leaders have repeatedly underscored the importance of maintaining sufficient stockpiles, with recent pledges from member states to increase defense spending and modernize production.
Industry analysts caution that while production capacity has surged, meeting long-term needs will require continued investment, particularly in explosive propellants and advanced munitions technologies. Nonetheless, the recent expansion marks a major shift in Western defense industrial output, with significant implications for both military preparedness and economic activity in participating countries.
