German automotive and arms manufacturer Rheinmetall Group will supply Ukraine with artillery ammunition worth about $153 million, a procurement from an unnamed NATO ally supporting Kyiv against the Russian invasion.
The new contract follows a German-funded Rheinmetall deal announced in November to supply Ukraine with 32 battle tanks, driver-training tanks and armored recovery vehicles. The delivery is scheduled in 2025 and includes tens of thousands of 155 mm artillery shells complete with projectile, fuse, propellant and primer, the Duesseldorf-based company said.
The defense contractor’s newly acquired Spanish subsidiary, Rheinmetall Expal Munitions, will manufacture the ammo.
In mid-October, Rheinmetall received an order from the German government for more than 100,000 rounds of 155 mm ammunition for delivery to Ukraine and manufacturing in the Rheinmetall Spanish unit.
Ammo production capacity is geared for a 2024 expansion in Rheinmetall’s plants in Germany, Spain, South Africa and Australia to bring total annual capacity to approximately 700,000 artillery rounds.
According to Rheinmetall, artillery ammunition demand is increasing not only because of the Ukraine war but also due to the rising needs of Germany and other NATO and European Union countries. Earlier, Rheinmetall booked multiyear contracts to supply the German Bundeswehr with several hundred rounds of artillery ammunition valued at about $1.3 billion.