The United States has announced an order worth nearly $1 billion to increase production of 155mm rounds that are being used in large quantities by Ukrainian forces against Russian invaders.

General Dynamics-Ordnance & Tactical Systems and American Ordnance LLC will compete for each order of contract to produce 155mm rounds.

According to the U.S. Army, the value of the order is $993.7 million. The estimated completion date is February 14, 2028.

The aim is to produce between 12,000 and 20,000 additional rounds per month, The Defense Post reports.

The new order follows the recent announcement of contracts with two other companies to produce artillery ammunition for Ukraine worth $522 million.

This order was awarded to Northrop Grumman Systems and Global Military Products.

Contracts for the production of artillery rounds are financed at the expense of the Ukraine Security Assistance Initiative.

The first deliveries are to start in March this year.

As previously reported, the Pentagon plans to increase artillery projectile production by 500 percent in two years.

The U.S. Department of Defense is investing billions of dollars in the production of ammunition to compensate for the shortage caused by the war in Ukraine and to build up stockpiles for future possible conflicts.

Before Russia invaded Ukraine on February 24, the U.S. capabilities produced approximately 14,400 unguided projectiles a month.

This was enough for the American army. However, the need to supply Ukraine’s military prompted Pentagon leaders to triple production plans in September and then double them again in January so that 90,000 or more shells would be produced a month.