Home / Business and Economy / Rheinmetall Becomes Europe's Largest Ammunition Producer Amid Arms Race
Rheinmetall Becomes Europe's Largest Ammunition Producer Amid Arms Race
12 Nov
Summary
- Rheinmetall opens €500m ammunition factory in Germany, to produce 350,000 rounds annually by 2027
- Rheinmetall's share price soars from €37 to over €1,700 since 2013, as it expands globally
- European defense spending to increase by €700bn-800bn between 2022-2028, driven by Russia's invasion of Ukraine
As of November 12th, 2025, Rheinmetall, Germany's biggest defense firm, has become Europe's largest ammunition producer. In August 2025, the company opened a new €500m ($580m) ammunition factory in Unterlüss, near Hanover, which will produce 25,000 rounds in 2025, ramping up to 350,000 rounds annually by 2027.
Rheinmetall's success is driven by the rapid rearmament of Europe following Russia's invasion of Ukraine in 2022. The company's share price has rocketed from €37 when the current CEO took over in 2013 to over €1,700 in October 2025. Rheinmetall has been expanding globally, buying a Spanish manufacturer and setting up new factories across Eastern Europe to become Ukraine's biggest ammunition supplier.
According to consultancy firm McKinsey, European defense spending is set to increase by a cumulative €700bn-800bn between 2022 and 2028, with Germany alone planning to spend €215bn annually to rebuild its military. This surge in demand has prompted Rheinmetall to aim for annual sales of €40bn-50bn, which would make it a major player on par with American defense giants like Lockheed Martin.
