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Netherlands to Invest Over $500M to Spur Domestic Defense Production

The Dutch government announced major steps to kickstart domestic defense production and assist Ukraine.

It includes an investment of 400 million euros ($432 million) for the domestic production of infantry fighting vehicles (IFV) for Ukraine and domestic use.

A total of 180 (out of 230) CV90 IFVs will be produced in the country under a Swedish initiative, NOS reported, citing the outgoing Defense Minister Kajsa Ollongren.

“European production capacity must be increased for Ukraine, but also for ourselves,” the Dutch public broadcaster quoted Ollongren as saying.

“Our armed forces must be ready to fight and there is time pressure on that.”

Sweden has already pledged the delivery of 50 CV90s to Ukraine, receiving 1.8 billion Danish kroner ($264 million) from Denmark for the initiative.

The commitment includes the production of new CV90s.

To Spur Domestic Defense Production

Additionally, Amsterdam has earmarked 25 million euros ($27 million) for defense startups and 54 million euros ($58 million) for domestic drone production.

The Dutch Armed Forces will employ the drones, according to NOS.

To spur domestic and European defense development, the procurement policy will focus on speed and innovation, rather than on cost.

It will also prioritize equipment produced in Europe.

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