Rheinmetall's New Factory Launches, Becoming Europe's Largest Artillery Shell Production Base​

On the local time of August 27th, Rheinmetall, Germany's largest military industry enterprise, held a high-profile commissioning ceremony for its new ammunition factory in the small town of Unterlüß, Lower Saxony, Germany. The ceremony was attended by many dignitaries, including German Vice Chancellor and Minister of Finance Christian Lindner, Minister of Defense Boris Pistorius, and NATO Secretary General Jens Stoltenberg, which fully demonstrates the high attention paid to this project by all parties.​

The construction progress of the Unterlüß weapons factory is remarkable for its speed. In February 2024, the groundbreaking ceremony was officially held here, and after just over a year of intense construction, it successfully entered the trial operation phase in the second quarter of this year. At present, the factory mainly focuses on the production of 155mm artillery shells. According to Rheinmetall's expectations, the new factory will be able to produce 25,000 artillery shells within this year. By 2026, the annual output will increase significantly to 140,000 pieces. When the factory reaches full capacity in 2027, the annual output will reach an impressive 350,000 pieces. At that time, it will undoubtedly become Europe's largest artillery shell production base, and its peak capacity will be 50% higher than the original plan.​

Beyond artillery shell production, the new factory has more long-term plans. In 2026, the factory is expected to start producing rocket motors. In the long run, there is also the possibility of carrying out warhead production here in the future. It is reported that Rheinmetall has invested as much as 500 million euros in building this modern ammunition factory. Such a huge investment demonstrates the company's firm confidence in this project and its long-term layout in the European defense market.

At the commissioning ceremony, Armin Papperger, CEO of Rheinmetall, delivered an important speech. He stated that the company has the ability to build similar facilities in other NATO countries and hopes to build a "pan-European defense ecosystem" through this. In fact, this is not just a verbal vision, but a strategic layout that Rheinmetall is actively promoting. On the same day as the new factory was commissioned, Rheinmetall announced that it would jointly invest 550 million euros with the Romanian government to build a gunpowder factory in Romania. Papperger confirmed that the factory is expected to be completed in about 18 months. On Monday of this week, Rheinmetall also confirmed that it will establish an ammunition factory and a supporting gunpowder factory in Bulgaria, and the relevant plans had already been announced to the public as early as April. Moreover, the company is currently building a new ammunition factory in Lithuania and is in negotiations with the Latvian government on investment matters.​

Of particular note is that Rheinmetall is vigorously advancing the construction of multiple production facilities in Ukraine, covering various fields such as ammunition, armored vehicles, and air defense systems. Earlier reports indicated that Rheinmetall's ammunition factory in Ukraine will be put into production in 2026. Papperger also revealed earlier that Rheinmetall's accumulated order value has reached 60 billion euros, and it is expected to increase to 80 billion euros in the short term. As the German government plans to significantly increase its defense expenditure, Rheinmetall will undoubtedly become one of the major beneficiaries.​

Traditionally, Rheinmetall specializes in the manufacture of tanks, infantry fighting vehicles, as well as related artillery systems and ammunition. However, in recent years, as the European military industry has entered a period of rapid expansion, the company has ushered in new opportunities for rapid development. Taking its stock performance as an example, the increase so far in 2025 has reached 166%, a figure that intuitively reflects the market's optimism about Rheinmetall's development prospects.​

The commissioning of Rheinmetall's new factory this time is not only a milestone in the company's own development but will also have a profound impact on the pattern of the European military industry. It will greatly enhance Europe's independent capabilities in the field of ammunition production, reduce its dependence on external supplies, and at the same time intensify competition and cooperation in the European military market. This will prompt relevant enterprises to further increase R&D investment, improve product quality and performance, so as to gain a favorable position in this market full of opportunities and challenges.​