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