Germany Launches Massive $9 Billion Ammo Deal for Ukraine & Future War

By Jim Morris, Warrior Vice President, News

The German defense giant Rheinmetall has signed the largest contract in its history – a deal with the Bundeswehr worth up to $9.1 billion to make 155mm artillery ammunition, some of which will be going to Ukraine.

The agreement expands an existing framework contract with the German army. Deliveries are set to begin early next year and will replenish ammunition supplies of Germany and several allies – the Netherlands, Estonia and Denmark.

The US and European Union countries have been sending 155mm shells to Ukraine from their own stocks since the Russian invasion in 2022. Under the EU plan, European countries were first to supply shells from their own arsenals. Next, they were to buy the ammunition from local suppliers.

Still, observers say there’s been a shell gap between Ukraine and Russia. Earlier this year, the Washington Post reported, one artillery platoon in eastern Ukraine that used to fire 20 to 30 rounds a day from its howitzer was down to shooting one to two shells daily, a fraction of those fired by Russian forces.

Last month, the Pentagon moved to close that gap by opening a factory outside Dallas. The Universal Artillery Projectile Lines facility will produce 30,000 artillery shells a month, ranging from 155mm ammunition to mortar shells. Added to current production, that will allow the Defense Department to reach its goal of 100,000 shells per month – almost ten times more than were being produced just a few years ago.

Gen. John Murray, Former Commander, Army Futures Command, talks to Warrior