EU ramps up ammo production amid supply shortages
European ammunition production is operating at full capacity. The European Union plans to boost ammunition production capabilities to 2 million rounds annually by the end of 2025. However, this increased production has depleted stocks of components like gunpowder and TNT.
In March of last year, the EU launched a program to ramp up ammunition production to meet the 2 million rounds annual target by the end of 2025. The EU allocated 500 million euros (540 million dollars). Norway, although not an EU member, contributed an additional 13 million euros (14 million dollars) to the fund, thanks to its integration with the EU through numerous programs.
Brussels dedicated 248 million euros (269 million dollars) for gunpowder production and another 124 million euros (134 million dollars) for explosives. The EU will also allocate 90 million euros for ammunition manufacturing.
European ammunition producers are intensifying efforts to secure supplies of chemicals and cotton, preparing for a significant increase in demand for explosives and propellants, as Bloomberg reports.
The increased production of artillery shells, rockets, and bullets has led to the depletion of stocks of gunpowder, TNT, and other explosive and propellant materials across the continent.
Gunpowder production
European companies are steadily increasing their output. German Rheinmetall plans to boost gunpowder production by over 50% by 2028, but even that may not be sufficient to meet the demand.
The entire European Union aims to raise explosive materials production by over 4,300 metric tons, representing more than a 30% increase.
Manufacturers of alternative materials, such as PETN, HMX, and RDX, which are used in explosives, are overwhelmed, as Bloomberg notes. Norwegian company Chemring Nobel has faced unprecedented demand since the Russian invasion of Ukraine. The company reports that its operations in Norway are running at full capacity, with a packed order book for years to come.
Bottlenecks
Just as explosives and propellants create bottlenecks for arms manufacturers, gunpowder and TNT producers face constraints in their supply chains as well.
Some European countries, including Germany, the Netherlands, Belgium, and Poland, have well-developed chemical industries. However, precursors for explosive materials represent only a small percentage of their production capabilities, according to the German Chemical Industry Association (VCI).
High energy costs and environmental protection regulations make it more profitable to produce chemicals abroad. Consequently, many companies are currently sourcing precursors, such as nitric acid, from China.
