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Europe is now capable of producing six times more artillery shells annually than two years ago, NATO Secretary General Mark Rutte said during a visit to Germany on August 27, 2025. Overall production is expected to reach 2 million rounds by the end of 2025.

NATO Secretary General Rutte made the remarks at the opening of Rheinmetall’s new artillery plant in Unterlüß, Germany, the largest in Europe. The factory alone plans to produce 350,000 shells a year once it reaches full capacity. The expansion is part of Europe’s broader push to strengthen its defense industry and ensure continued supplies for Ukraine in its war against Russia.

“Countries must now focus on tanks, air defense, and missiles,” Rutte said. “We can build on our experience with ramping up shells and learn from Ukraine’s innovative industrial mobilization.”

Germany’s Defense Minister Boris Pistorius and Finance Minister Lars Klingbeil joined Rutte and Rheinmetall CEO Armin Papperger also attended the inauguration ceremony. The facility is focused on 155 mm artillery shells, which are in short supply across Europe and urgently needed in Ukraine.

Papperger said production will gradually increase, with 100,000 shells expected to be delivered to Ukraine next year and 200,000 the following year. “The rest is for other partners,” he said.

Great visit to the new Rheinmetall artillery plant in Unterlüß with Armin Papperger, @LarsKlingbeil, Boris Pistorius & SACEUR Gen. Grynkewich.
Defence industry across Europe & North America matters more than ever. As we invest more in defence we also need to ramp up production.… pic.twitter.com/dqVyqhudsA

— Mark Rutte (@SecGenNATO) August 27, 2025

Rheinmetall plans to increase unit production not only at Unterlüß but also across several other sites, ensuring that Europe can maintain a steady supply to meet both NATO commitments and domestic defense requirements. Germany, along with France and other European nations, has been actively seeking to diversify production locations to reduce bottlenecks and potential vulnerabilities in case of supply chain disruptions.

Pistorius praised the rapid construction timeline, noting the plant was completed in just 14 months. “In the past, something like this would have taken two to four years. But here it was achieved in 14 months. That’s what matters: sending the signal that we can do it faster, we want to do it faster, and production is ramping up,” he said.

This accelerated timeline reflects a broader trend in European defense planning: mobilizing industrial capacity quickly and efficiently in response to the conflict in Ukraine. The Rheinmetall factory relies heavily on automation to maximize output per employee, a shift that could become a model for future European defense projects.

Investment and industrial context

Rheinmetall invested roughly €500 million in the new facility and a second site that will specialize in rocket motors. The Unterlüß site already includes smaller artillery production lines, Puma tank manufacturing, and a large firing range.

“With this we’re opening a new chapter both in our company’s history and that of our site at Unterlüß with regard to artillery production,” Papperger said.

The expansion of Rheinmetall reflects a larger European trend. Germany, France, and several other NATO members are planning or constructing additional factories and upgrading existing facilities. This effort is part of a continental strategy to reduce dependency on external suppliers and ensure readiness for a potential long-term confrontation in Europe.

The investments also serve as a deterrent, signaling to Russia and other potential aggressors that Europe has both the industrial capacity and political will to respond to military threats.

Stock market surge

Rheinmetall’s importance to the war effort has been reflected in its stock performance. The company’s shares, stagnant at or below $116 for decades, surged after Russia’s full-scale invasion of Ukraine in February 2022.

The stock price continued climbing as Germany pledged higher defense spending, reaching around $584 by last year’s U.S. presidential election. In the first half of this year, it surged again, peaking near $2219 in May.

Investor interest is driven not only by Europe’s military expansion but also by the company’s growing international profile. Last year, Papperger was reportedly targeted in a foiled Russian assassination attempt, underscoring Rheinmetall’s strategic role in supplying Kyiv.

The factory expansion and stock performance highlight how industrial capacity, political support, and global conflict intersect to shape corporate and national defense priorities.

Rutte’s Ukraine visit

The NATO chief’s stop in Germany followed his recent visit to Kyiv, where he met with Ukrainian President Volodymyr Zelenskyy to discuss Ukraine’s future security arrangements. The talks focused on ways to strengthen Ukraine’s defense capabilities and explore long-term frameworks for ending the war.

NATO Secretary General Rutte also said that a coalition of 30 nations, including Japan and Australia, has been working on a framework of security guarantees for Ukraine, which could provide long-term military and financial support.

The push to increase artillery production comes amid concerns that Europe’s defense industrial base was underprepared for prolonged high-intensity conflict. Many NATO members have historically relied on aging stockpiles inherited from the Cold War era. The war in Ukraine has exposed the limitations of these reserves and prompted an unprecedented investment in domestic production.

Future outlook

As Europe ramps up artillery production, analysts note that additional efforts will be required to balance supplies of tanks, air defense systems, and missiles. The Rheinmetall factory represents just one component of a larger European strategy to modernize defense capabilities and reduce reliance on foreign suppliers.

NATO officials have repeatedly emphasized the need for member states to coordinate investments and stockpile management, ensuring that production increases translate into operational readiness.

The rapid pace of construction and production at Unterlüß demonstrates that Europe can mobilize industrial resources when political will aligns with strategic necessity. With Ukraine’s war ongoing and global tensions rising, this expansion is likely to serve as a template for future defense initiatives across the continent.