Rheinmetall Opens Europe’s Largest Ammunition Plant in Lower Saxony After €500m Investment

Unterlüß (Lower Saxony), September 2025 : In a landmark moment for European defence, Rheinmetall has officially opened Werk Niedersachsen—Europe’s largest ammunition factory—in Unterlüß. Completed in just 15 months with an investment of nearly €500 million, the facility is seen as a strategic step in strengthening NATO and EU military readiness.

A Ceremony of Strategic Significance

The inauguration was attended by top leaders, including Vice-Chancellor and Finance Minister Lars Klingbeil, Defence Minister Boris Pistorius, NATO Secretary-General Mark Rutte, Chief of Defence General Carsten Breuer, and Bulgarian President Rumen Radev. Their presence highlighted the project’s crucial role in Europe’s security.

Production and Expansion Plan

The factory will ramp up rapidly:

• 25,000 artillery shells by the end of 2025

• 140,000 shells in 2026

• Full capacity of 350,000 shells annually by 2027

Beyond artillery, the plant will begin rocket engine production in 2026 and will manufacture high explosives such as RDX, ensuring a fully integrated ammunition supply chain.

Speed, Scale, and Sovereignty

Rheinmetall CEO Armin Papperger hailed the record construction time of just 15 months as “Rheinmetall speed.” He stressed that the plant guarantees independent supply for Germany and allied nations, while serving as a model for similar facilities in other NATO states. Plans are already in motion for new plants in Romania, Lithuania, and other partner nations.

Strategic Context

The new plant comes amid Europe’s urgent push to scale up defence production following Russia’s war in Ukraine. Rheinmetall aims to produce 1.5 million artillery shells annually worldwide by 2027, covering sites in Germany, Spain, South Africa, and soon Romania.

Germany has already placed record contracts worth €8.5 billion for artillery shells and ammunition systems, with support from the Netherlands, Estonia, and Denmark. NATO’s overall target is to secure 2 million shells by 2025 to rebuild stockpiles.

Unterlüß: A Historic Site Reimagined

Rheinmetall has operated in Unterlüß since 1899. Today it is the company’s largest global site, spanning 60 square kilometres with 3,200 employees. The site is home to major divisions for land systems, weapon and munition development, and Europe’s largest private proving grounds. With the new ammunition facility, Unterlüß now stands as a cornerstone of European rearmament.

At the ceremony, Rheinmetall signed a Letter of Intent with Romania for a €550 million investment in a new factory there. Similar projects are under discussion in Bulgaria and Lithuania, further extending the company’s role in building a pan-European defence ecosystem.

Defence Minister Pistorius praised the industry’s “speed and substance,” while NATO’s Mark Rutte warned that Russia and China’s military build-ups make such investments vital for long-term security.