Rheinmetall Signs €8.5 Billion 155mm Artillery Shell Contract With Germany for Bundeswehr and Ukraine
German defense giant Rheinmetall has entered a framework contract worth €8.5 billion (approximately USD 9.1 billion) with Germany’s Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support for the supply of 155 mm artillery ammunition. Signed on June 20, 2026, the deal — the largest in Rheinmetall’s history — will cover deliveries to the Bundeswehr with a portion earmarked for transfer to Ukraine.
What the Contract Covers
The framework covers extended-range 155 mm shells compatible with NATO-standard artillery platforms already in Ukrainian service — including the German PzH 2000, French Caesar, and Swedish Archer howitzers. Rheinmetall has committed to supplying 100,000 long-range rounds annually under the deal.
The Production Challenge
Ukraine has requested approximately 1.2 million extended-range shells annually — a figure that far exceeds current European industrial capacity. Rheinmetall has been aggressively expanding across multiple continents to close that gap: its planned ammunition factory in Ukraine was targeting initial production by summer 2026, while its American subsidiary, American Rheinmetall, announced a $41 million production investment in early June.
CEO Armin Papperger has repeatedly stated the company’s ambition to double global arms and ammunition revenues from 2025 levels. This €8.5 billion framework is the largest single step toward that target.
Sources: Janes; United24 Media; Militarnyi; Defence Express.
