Rheinmetall has received a $223.3 million order from the Spanish Army for 500,000 modular propellant systems for 155 mm extended-range artillery ammunition.
Under a framework agreement, the company is expected to complete the delivery of the systems for the M109 and SIAC howitzers by 2025. The deal includes an option for Spain to extend the contract by two years to procure additional units.
The latest award builds on the Spanish military’s previous purchase orders in 2024. Earlier, Rheinmetall secured a double-digit million-euro contract to supply mortar shells and a $217.74 million order for 155 mm artillery ammunition.
The recent contracts align with the Spanish Army’s goal of replenishing its ammunition stocks amid the ongoing Russian military aggression against Ukraine.
Rheinmetall, one of the major manufacturers of large-caliber ammunition and propellant systems, received orders for its products from other countries, including Switzerland and Germany, this year.
It also secured a contract worth several hundred million euros from Ukraine to build an ammunition factory, which is expected to start producing ammunition within two years.