Europe’s Ammo Push: Rheinmetall Opens Mega Plant

 

Europe’s Ammo Push: Rheinmetall Opens Mega Plant — “We Must Catch Up with Russia”

Rheinmetall on Wednesday inaugurated what the company says will become Europe’s largest artillery-ammunition factory, a €500 million facility in Unterlüß, northern Germany, that officials and the defence industry portray as a central plank in a wider effort to close a yawning gap with Russia’s wartime munitions output. Company executives and NATO-aligned officials described the plant as the start of a “pan-European defence ecosystem” — and a signal that Europe is moving from emergency replenishment toward large-scale, sustained production.

The plant, the pledge and the numbers

Rheinmetall said the Unterlüß factory would produce about 25,000 artillery rounds this year, rising to an annual capacity of 350,000 rounds by 2027. The company added that, combined with output from other sites, total production across Rheinmetall facilities could reach around 700,000 shells a year, contributing toward European objectives to scale munitions manufacturing rapidly. The German plant launch was attended by senior officials, underscoring political backing for the initiative. 

At the opening, Rheinmetall CEO Armin Papperger warned that Europe must accelerate production to “catch up” with Russia’s ammunition output and proposed similar factories across NATO countries — naming Lithuania and the U.K. as places with active projects and flagging potential expansions in Romania, Latvia and Ukraine. The company is also developing related capabilities at Unterlüß, including rocket-motor production and possible warhead manufacture. 

On top of the German factory, Rheinmetall signed a separate agreement with Romania to build an ammunition propellant (powder) plant worth about €535 million ($626 million), with construction slated to start in 2026 and employ some 700 workers once complete. The Romanian facility is intended to supply ignition powder for regional demand and to reduce Europe’s vulnerability to single-source supply chains. 

Why Europe is accelerating production

The push comes after more than three years of wartime consumption in Ukraine that exposed shortfalls in Western munitions stocks and production capacity. NATO and EU governments have responded with record defence budgets and emergency procurement, but industry leaders argue that capacity must grow from emergency surge levels to a durable industrial base able to sustain protracted high-intensity operations. Rheinmetall’s new factory — and planned sister projects — are designed to move Europe toward that baseline. 

Political backing — and political sensitivities

The plant opening drew high-profile attendees and endorsements; those appearances underline the political consensus in parts of Europe on the need to strengthen supply chains. Yet the expansion also raises domestic and international sensitivities, from industrial security (protecting plants and supply lines) to export-control and diplomatic questions about where munitions will be sent and under what conditions. Germany and other NATO members have insisted that increased production is primarily intended to replenish stocks and support Ukraine’s defence, but critics warn of the risks inherent in dramatic rearmament.

What this means for Ukraine, NATO and Russia

For Ukraine and NATO, higher European ammunition output promises steadier resupply of artillery rounds, which have been decisive on the battlefield. A more robust industrial base could reduce reliance on ad hoc stock transfers and U.S. surge shipments, giving European capitals more autonomy over sustainment. For Moscow, the new capacity narrows one of Russia’s long-perceived advantages — raw munitions throughput — and may harden planning and operational calculations on both sides. That shift could lengthen the conflict, but also decrease the risk that Ukraine’s defence is constrained by ammunition shortages.

Risks and practical challenges

Scaling to hundreds of thousands of shells annually is not just a matter of money. It requires secure supply chains for propellant and components, skilled labor, environmental permitting and rigorous safety regimes. Building workforce capacity, ensuring quality control, and protecting facilities from espionage or attack are complex tasks. There is also a risk of concentration: if too much capacity is clustered in a few suppliers, a localized disruption could have outsized effects. Finally, regulatory and public-opinion hurdles — especially around explosives manufacture and potential export destinations — remain potential bottlenecks. 

Analysis

Rheinmetall’s Unterlüß project is a turning point: it shifts Europe from ad-hoc production to industrial-scale planning. The company’s proposal for a pan-European ecosystem is sensible from a logistics and resilience perspective — distributed capacity across NATO states reduces single-point failure and brings procurement closer to theatre needs. But converting political will into long-term industrial capability will take years and sustained funding, not just headlines. There is a narrow window to professionalize and secure a defence supply chain before strategic competitors adapt or battlefield dynamics change.

Strategically, increased European munitions production reduces one of Russia’s operational advantages and gives Ukraine and NATO more durable options. Politically, however, the expansion risks stoking domestic unease in EU societies wary of long-term militarisation. The smart path is a balanced approach: scale capacity quickly while investing in transparency, export governance, workforce development and industrial security to ensure those factories bolster defence without becoming a new source of geopolitical fragility.