German Army Boosts Ammunition Supplies Amidst Surging Demand

The German army has decided to order 200,000 more artillery shells from Rheinmetall, an arms manufacturer, making the total order worth 880 million euros. This move is part of an effort to replenish stocks and support Ukraine in its conflict with Russia. Rheinmetall's market value has surged due to the increased demand for ammunition.

The German army intends to order 200,000 more artillery shells from armsmaker Rheinmetall than it had planned, Spiegel magazine reported on Tuesday, citing a letter from the Defence Ministry to the Parliament's budget committee. The army plans to get 200,000 additional 155mm artillery shells worth about 880 million euros ($960 million) within its framework agreement with the defence firm, the letter said. It had already agreed to a 1.2 billion euro deal for several hundred thousand shells, fuses and charges.

The new shells are meant to refill the army's depots as Germany helps supply Ukraine as it fights off the Russian military, which invaded in 2022. As Western governments beef up their military and replenish their stocks after supplying arms to Kyiv, Rheinmetall, whose market value has more than quadrupled since the war in Ukraine, is seeing a sharp increase in orders.

By placing the order, the German defence ministry also wants to ensure that Rheinmetall can set up a new production line in the central German town of Unterluess. Rheinmetall, one of the biggest producers of artillery and tank shells in the world, began ramping up production after Russia's invasion of Ukraine, where the need for ammunition has exacerbated a shortage and left European manufacturers struggling to meet demand. ($1 = 0.9169 euros)

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