Sweden Orders $526M Artillery Ammunition from Rheinmetall, Nammo

Largest ammunition investment since 1980s to bolster Sweden’s defence, NATO readiness, and long-term supply for Archer artillery system
  • Defensemirror.com bureau
  • 10:52 AM, July 10, 2025
  • 335
Sweden Orders $526M Artillery Ammunition from Rheinmetall, Nammo
Archer mobile howitzer @U.K. MoD

Sweden has signed two contracts worth $526 million with Rheinmetall Denel Munition and Nammo to boost its artillery ammunition supplies, marking the country’s biggest investment in this sector since the 1980s.

The Swedish Defence Materiel Administration (FMV) finalized agreements with Germany’s Rheinmetall Denel Munition and Norway-based Nammo to supply thousands of artillery shells and supporting materials for the Swedish Armed Forces. The contracts aim to reinforce national defence capabilities and secure long-term access to critical ammunition stocks.

"This order strengthens Sweden’s defence capability. It is a vital investment in the security of Sweden and NATO," said Minister for Defence Pål Jonson in an official statement.

Under the agreement, Rheinmetall Denel Munition—a joint venture between Germany’s Rheinmetall and South Africa’s Denel—will supply artillery shells and propellant powder for Sweden’s Archer artillery system. This order, valued at over SEK 4 billion (roughly $380 million), is scheduled for delivery between 2025 and 2027.

The second deal is a framework agreement with Nammo Sweden AB, under which an initial order exceeding SEK 1 billion (roughly $100 million) will be placed for 155 mm high-explosive extended range (HE–ER) shells. These shells can reach up to 40 kilometers and are also designed for the Archer system. Deliveries under the Nammo agreement are expected to begin in 2028.

The decision to work with two suppliers is intended to diversify sources and ensure resilience in supply, especially in light of the growing global demand for artillery ammunition following Russia’s full-scale invasion of Ukraine.

The Nammo framework deal also supports a broader EU-backed initiative to expand artillery ammunition production capacity across Sweden and the Nordic region. This is part of a coordinated effort to build strategic stockpiles and enhance NATO’s eastern flank.

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