EU Allocates €180 Million to Scale Up Ammunition Production for Ukraine

EU Allocates €180 Million to Scale Up Ammunition Production for Ukraine
Artillery shells are lined up in a storage room at the ammunition loading and packaging workshop of the new artillery plant operated by ammunition manufacturer Rheinmetall during a media tour on the day of its opening in Unterluss, Germany, on August 27, 2025. Photo credits: REUTERS/Annegret Hilse

The European Defense Fund has allocated €180 million to expand facilities for manufacturing ammunition and missiles for Ukraine.

The initiative aims to strengthen production capabilities in both EU countries and Ukraine.

As noted on the European Commission website, the key objective of the funding is to reduce the time from order placement to product delivery on the Ukrainian side.

This involves optimizing production processes and improving the efficiency of defense logistics.

The investments are also aimed at establishing a sustainable and independent component base.

The total budget for the competition is €180 million, and the maximum funding amount for a single project is €30 million.

This approach allows support for several major initiatives within a single program.

The call for proposals will remain open until October 13, 2026.

Participants will compete for funding for projects that demonstrate the ability to rapidly scale up production and ensure stable supplies. Particular attention is being paid to the development of joint production sites and lines.

Production of 155-mm shells at the Rheinmetall plant. Photo from the company's website

In addition, the program provides for the expansion of specific production capacities, the integration of new technologies, and the testing of modern control and navigation systems.

The program also covers the development of modular assembly and the adaptation of heavy industry enterprises to defense needs.

Last year, the European Parliament and the Council of the EU reached an agreement on Ukraine’s accession to the European Defense Fund with a budget of EUR 7.3 billion.

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