New ammunition production budget of €500m comes out of a total €2bn to strengthen the European Union’s defence industry

The European Commission (EC) recently announced that it would be allocating €500m in funding under the Act in Support of Ammunition Production (ASAP) to ramp up the European Union’s (EU) ammunition production capacity to 2 million shells per year by the end of 2025.

The ASAP, which offers grants to the European defence industry to increase its production capacity and tackle bottlenecks, was created last year in order to urgently deliver ammunition to the Ukraine and help EU member states build their own stocks.

Total budget of €2bn

In addition to the envelope designated for ammo production, the Commission also launched other initiatives aimed at reinforcing Europe’s defence base, the Work Programme for the instrument for the reinforcement of the European defence industry through common procurement (EDIRPA), and the fourth annual Work Programme of the European Defence Fund (EDF).

For the sum of these plans, which come in the wake of the adoption of the first ever European Defence Industrial Strategy (EDIS) and the associated proposal for a European Defence Industry Programme (EDIP), the EC has earmarked a total budget of almost €2bn.

Production to reach 2m per year

The EC, having already selected 31 projects to assist European industry in increasing its ammunition production under the ASAP, expects the EU bloc to reach an annual shell production capacity 2m by the end of 2025.

The selected projects cover explosives, powder, shells, missiles, and testing and reconditioning certification and will be funded with €513m from the budgets of the EU and Norway while leveraging additional investment from industry through co-financing.

To address bottlenecks in shell production, the ASAP is especially focused on powder and explosives, allocating some three quarters of the programme to these areas. The ASAP will support projects that will increase the annual production capacity by more than 10,000 tons of powder, and by more than 4,300 tons of explosives.

The companies receiving ASAP funding are spread across the EU and the support being provided will not only reinforce their existing production capacities, but will also enable them to build new facilities.

According to the EC, “the completed projects will enhance the responsiveness and capability of the Union’s defence industry, ensuring a faster supply of ammunition and missiles in Europe.”

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