Rheinmetall has secured a major contract to supply artillery ammunition worth 444 million euros (approximately $521 million) to a yet-to-be-identified Eastern European nation, under the auspices of a commission from the United States. The contract includes the delivery of 155mm M107 projectiles equipped with M4A2 propellant charges, as well as 105mm M1 shells.
The M107 artillery round is recognized as a standard high-explosive option utilized by NATO forces, primarily designed for long-range indirect fire capabilities. Meanwhile, the 105mm M1 shell is crucial for lighter artillery systems, known for its mobility and effectiveness in supporting maneuver units on the battlefield.
Out of the total contract value, at least 170 million euros ($199 million) was previously allocated as a pre-order, with the remaining 274 million euros ($321 million) confirmed recently. Shipments are expected to commence in 2026, with a completion date set for June 2027.
This recent agreement aims to address the increasing pressure on ammunition supplies in Europe, where nations are urgently seeking to bolster their inventory. The ongoing war in Ukraine has particularly strained available artillery resources, amplifying the need for reliable supply chains among allied nations that have traditionally relied on U.S. and allied stockpiles.
The deal fits into a larger strategic shift towards enhancing domestic production capabilities within Europe and its neighboring regions. Rheinmetall has set ambitious goals, aiming to produce as many as 1.5 million 155mm artillery shells annually by 2027. In line with this objective, the company inaugurated a major munitions factory in northern Germany in August 2025, and has also established partnerships to set up ammunition production facilities in various allied countries. This move is part of a concerted effort to strengthen defense manufacturing capabilities across the continent.
