Rheinmetall opens a factory in Ukraine: Ammunition production in a war zone
In 2024, Rheinmetall announced the establishment of an ammunition factory in Ukraine — an unprecedented step in the history of NATO’s defense industry. The joint venture with the Ukrainian state defense industry aims to produce 155 mm artillery shells and provide maintenance and repair of armored vehicles within the country, shortening the supply chain between production and the front line.
Key Facts
| Date of Announcement | 2024 |
| Partners | Rheinmetall AG + Ukrainian State Defense Industry |
| Planned Products | 155 mm ammunition, armored vehicle maintenance, IFV components |
| Production Capacity Goal | Over 100,000 155 mm shells/year (Phase One) |
| Legal Structure | Joint venture — Rheinmetall holds the majority stake |
Why a Factory in a War Zone?
This decision reflects the classic logistical logic of keeping production away from conflict zones. Proximity to the front reduces transport time and exposed supply chains. The decision also carries a political message by contributing to building Ukraine as an independent defense industrial base. Critics point to security risks: Russia prioritizes Ukrainian defense industry facilities as targets.
Rheinmetall Deliveries to Ukraine 2022-2024
| 50 Gepard SPAAG | Rehabilitated from stockpiles |
| More than 100 Marder IFV | From German army stocks |
| Over one million 35 mm rounds | Including AHEAD — alternative supply chain developed |
| Leopard 1A5 | Rehabilitation and delivery ongoing |
Sources
- Rheinmetall AG — Ukraine Factory Announcement, 2024
- Defence News — Rheinmetall Ukraine Factory, 2024
- Reuters — Joint Venture Coverage
