Germany’s Bundeswehr Secures €1.3 Billion Deal with Rheinmetall for Hundreds of Thousands of Artillery Shells

The necessity to restore reserves of munitions prompted by the conflict in Ukraine is leading to substantial artillery munitions agreements for Rheinmetall.
The German armed forces have recently placed a significant order for both operational and training artillery munitions valued at approximately €1.3 billion, inclusive of VAT. Two agreements reflecting this have now been finalized at the Federal Office for Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) in Koblenz.
Rheinmetall has secured a new framework agreement for the delivery of 155mm artillery munitions, while an existing agreement has been enhanced. Altogether, the delivery spectrum includes several hundred thousand projectiles of diverse varieties, comprising fuses and propellant charges. Scheduled to continue until 2029, the new framework agreement signifies a potential order value of around €1.2 billion, including VAT.
In addition, the Bundeswehr has broadened an existing framework agreement for DM121 munitions. Complementing the aforementioned framework contract, this brings the order volume to roughly €137 million, VAT included. Thus, the value of the existing framework contract rises from €109 million to a combined total of €246 million, including VAT.
Featuring insensitive properties, the DM121 high-explosive projectile is utilized for training and simulation purposes.
The initial orders for operational and training munitions from the framework agreement mentioned earlier were placed immediately after the contract was finalized. Delivery of projectiles valued at €127 million (inclusive of VAT) is expected to occur imminently.
Since its establishment over 125 years ago, Rheinmetall has been a dependable associate of the artillery division. Even today, the pressing and drawing technique developed by company founder Heinrich Ehrhardt remains essential for crafting modern artillery barrels. Rheinmetall’s munitions array includes, among other ordnances, the highly explosive DM121, the DM125 smoke/obscurant shell, the DM121 SMArt search-fused round (co-developed with Diehl Defence), alongside the RH68 practice variant and the range-optimized RH1901 and RH1902 smoke/obscurant shells. The Group’s product catalog also features the versatile Assegai family of 155mm artillery munitions manufactured by Rheinmetall Denel in South Africa, incorporating insensitive munitions (IM), conventional high explosive (HE) rounds, and smoke/obscurant, illumination, infrared illumination, and additional projectiles. With its boat tail (BT) and base bleed (BB) designs, the Assegai family demonstrates a ballistic stability, ensuring that the entire munitions range can be deployed at its maximum effective distance of about 40 kilometers. Under the framework agreement, the Bundeswehr will be integrating the proven Assegai munitions family.
The latest contracts further emphasize Rheinmetall’s technological supremacy as an innovator and manufacturer of munitions in Europe. Moreover, the framework agreements will facilitate a secure supply of munitions to the military forces of Germany and other NATO allies, allowing for improved production planning and optimal capacity utilization. Additionally, the guaranteed long-term production of various munitions formats throughout the contract’s duration, resulting in immediate availability, offers logistical benefits to other 155mm artillery operators. For Rheinmetall, the framework agreement signifies a foundational level of capacity use at its munitions production facilities for years ahead.