Europe

Rheinmetall Invests $22M to Expand Ammunition Output in Spain

Rheinmetall is investing 20 million euros ($22.4 million) to expand ammunition production at its Albacete site in Spain, adding capacity for millions of medium-caliber components annually.

The new production line will manufacture around 1.2 million projectiles and 1.8 million cartridge cases each year. The expansion also boosts mortar production and will increase the site’s workforce from about 210 to 300 employees.

The components will feed into Rheinmetall’s wider manufacturing network, including its plant in Burgos, also in Spain, where they can be processed into ammunition for infantry fighting vehicles, anti-aircraft guns, and counter-drone systems. 

Products include armor-piercing projectiles and AHEAD ammunition, which uses programmable airburst technology against aerial threats.

Albacete will also expand mortar production, with annual capacity expected to reach 40 Dual-Eimos 81mm mortar systems and more than 650 mortars in 60mm, 81mm, and 120mm calibers. 

Rheinmetall’s Firepower Project

Chief executive Armin Papperger said “it makes perfect sense” to draw from Albecete plant expertise for the Firepower project, which is Rheinmetall’s broader effort to increase ammunition output in response to rising demand from Western militaries. 

“Albacete will thus be of strategic importance not only for Rheinmetall, but also for Spain and Europe, and will contribute to credible defense capabilities,” Papperger said.

By 2030, the German company aims to reach an annual production capacity of 1.5 million rounds of 155mm artillery ammunition, 240,000 rounds of 120mm tank ammunition, and 4 million rounds of medium-caliber ammunition.

Firepower also covers investments beyond Spain. Rheinmetall is building a new ammunition plant in Unterlüß, Germany, and another in Baisogala, Lithuania, while expanding existing facilities.

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