Ukrainian Defense Minister Shmyhal announced on 11 September that German defense giant Rheinmetall will build a new ammunition plant in Ukraine, following productive talks in London.

German defense giant expands Ukrainian operations

Ukraine’s Defense Minister Shmyhal met with Rheinmetall AG CEO Armin Papperger in London during the Defense Security and Equipment International Exhibition and Conference. The meeting finalized procedures for launching new joint production capabilities between the two nations.

Shmyhal confirmed that land was allocated on 9 September in a secure Ukrainian region. The new facility will manufacture Rheinmetall shells specifically for Ukraine’s Defense Forces needs. This development represents a significant expansion of the existing cooperation between Ukraine and the German defense contractor.

Broader defense cooperation beyond ammunition

The partnership extends beyond shell production into multiple defense sectors. Both sides discussed developing capabilities for armored vehicle repair and manufacturing within Ukraine. Rheinmetall’s product lineup includes several new systems that could strengthen Ukrainian Defense Forces capabilities.

Air defense cooperation formed another key discussion point during the London talks. Shmyhal and Papperger explored joint development of enhanced anti-drone solutions. These systems would help Ukrainian forces more effectively counter enemy drone threats.

Romania is accelerating the revival of its defense industry with American and German support, prioritizing the domestic production of drones, explosives, and gunpowder, Radio Free Europe Romania reports.

The move comes as the country consolidates its role as a key NATO hub on the Alliance’s eastern flank and a critical logistics lifeline for Ukraine amid the ongoing Russo-Ukrainian war.

Brașov to become drone and explosives hub

In spring, Romania’s Ministry of Economy announced that the Transylvanian city of Brașov would host new facilities for the production of drones, explosives, and ammunition.

The local Carfil military plant is expected to produce drones using components supplied by American defense company Periscope Aviation.

“This is not a simple acquisition; it is a complete technology transfer, meant to build an indigenous industrial capacity in Romania — a long-term strategic objective for many NATO member states that want to reduce their dependence on imports and strengthen their defense industrial base,” stressed Economy Minister Bogdan Ivan.

Mr. Ivan also confirmed that drone production is scheduled to begin this summer, with an annual target of approximately 3,500 units.

“We are beneficiaries of the European SAFE Mechanism, financed by the European Commission with up to €150 billion. We have submitted Romania’s production capacities for the next ten years, along with proposals on how we can evolve, what we can build, and where we can be competitive,” Ivan said in an interview with Digi24.

Rheinmetall invests €400 million in gunpowder

At the same time, Germany’s Rheinmetall defense conglomerate is building in Brașov what will be the largest military gunpowder factory in Europe, with an investment of €400 million.

Romania’s leadership has emphasized that domestic production of gunpowder is a top priority, as the country currently imports it from Serbia, where much of the supply originates in Russia.

“This is essential for Romania’s security and independence,” said former Economy Minister Radu Oprea, underlining the need to reduce reliance on foreign sources.

Last year, Prime Minister Marcel Ciolacu also declared that Romania would soon host the “most modern gunpowder plant in Europe.”

Broader industrial revival

The new projects in Brașov are part of a broader national strategy to revitalize Romania’s defense industry. German investments are also reinforcing the Mediaș plant, which is set to expand production of military vehicles.

In Satu Mare, plans are underway to launch production of Leopard tanks, further strengthening Romania’s heavy weapons capabilities.

These initiatives align with NATO’s push to ramp up production capacities across Europe in response to Russia’s ongoing war against Ukraine. Romania’s geographical position and existing infrastructure make it a frontline state in both logistics and industrial support for Kyiv.

Photo: Rheinmetall Automecanica SRL plant in Mediaș, Romania. May, 2024. Romania. Frame from the Nova Tv Medias video channel

Continuing tradition

Since the 1990s, Romania has cultivated increasingly close ties with major foreign defense companies.

Israel’s Elbit Systems was the first, establishing a joint venture with Aerostar Bacău in 1997 to modernize the Romanian MiG-21 fleet to the LanceR standard. The company also operates a local branch, Elmet International SRL, which produces avionics and drone technology.

Partnerships with US companies such as General Dynamics, Lockheed Martin, and Raytheon Technologies have resulted in:

• creating an F-16 maintenance center
• the production of Patriot system components
• an assembly and production line for Piranha V armored personnel carriers in Romania.

Meanwhile, France’s Airbus, Naval Group, and Thales have supplied military communication systems, taken over and modernized the Ghimbav aircraft components factory, and entered into partnerships with the Constanța Naval Shipyard.

In addition, Poland’s PGZ has signalled interest in competing with its Borsuk model in the upcoming tender for Romania’s new infantry fighting vehicles.

Bayraktar drones stand lined up at a production facility in Brasov, which received massive investments from Airbus in 2024. Photo: Profimedia Images, Hotnews

Strategic significance for NATO and Ukraine

Romania is boosting its defense sector under the new 2024–2030 National Defense Industry Strategy, raising military spending above 2% of GDP and prioritizing advanced technologies such as AI, cybersecurity, and drones.

The plan focuses on:

• joint UAV production with Ukraine
• potential submarine manufacturing
• modernization of naval forces,
• fostering research and development, NATO–EU cooperation, and public–private partnerships to strengthen national security and position Romania as a competitive global defense producer.

Since Russia’s full-scale invasion of Ukraine in 2022, Romania has re-examined its security posture as a direct neighbor of the war zone. Hosting vital NATO facilities and serving as a transit hub for military aid, Romania has become indispensable to both Ukraine’s defense and NATO’s deterrence strategy.

Armin Papperger, head of German defense conglomerate Rheinmetall, said Ukraine will soon receive its first ammunition from a new plant in Unterlüß, Lower Saxony, Deutsche Welle reports. 

First deliveries and 2026 plans

This year, 25,000 shells will be sent to Ukraine. The factory could produce 150,000 or more next year.

“We will increase production to 350,000 for Germany and Ukraine. Next year, we can deliver at least 100,000, and later possibly 200,000 shells to Ukraine,” Papperger noted.

Ukrainian plant: plans and challenges

Rheinmetall is building a similar factory in Ukraine, but bureaucracy is slowing the process.

“I discussed this with Defense Minister Denys Shmyhal. I told him: it can be done in 14 months. Currently, the civilian part isn’t ready; a concept is needed,” the CEO explained.

He added that the plant could be ready in 12–14 months if organizational issues are resolved.

Drones in Ukraine

The company also plans to invest in drone production — not small quadcopters, but larger, high-tech systems.

“If there are opportunities — we will do it,” Papperger added.

The Dutch Defense Ministry will finance the production of 20 Ermine ground vehicles for Ukraine, German defense manufacturer Rheinmetall announced on June 25.

The contract, signed during the NATO summit in The Hague, marks the first order for the new-generation tactical platform. Ukraine will become the first country in the world to receive the Ermine.

The Ermine, developed by Rheinmetall Defence Nederland, is designed primarily for front-line evacuation missions.

The light buggies provide fast, maneuverable transport for wounded personnel in combat zones. Rheinmetall said the deliveries are expected to begin in 2026.

According to Rheinmetall, the Ermine is a "lightweight tactical system that combines the robustness of a diesel unit with many advantages of an electric drive."

It's a modular system that comes in four configurations — 4x4 quad, 4x4/6x6 buggy, or Unmanned Ground Vehicle (UGV).

The Ermine combines a diesel engine with an electric motor that allows for what Rheinmetall describes as "Silent Move & Silent Watch," and has a range of up 1,200 kilometers, and can carry up to a tonne.

"The electrical powertrain makes the Ermine almost silent. It is capable of driving up to 50 km silently through heavy terrain and up to 100 km on the road," the company said.

"The system offers its users significant tactical advantages in avoiding enemy reconnaissance."

The electrical engine can even provide charging points for soldiers out in the field.

On June 24, Dutch Prime Minister Dick Schoof presented a new military aid package for Ukraine, including 100 drone radar systems, front-line vehicles, and 80 million euros (over $90 million) for the drone initiative.

The NATO summit concluded on June 25 with a joint pledge by member states to raise defense spending to 5% of GDP by 2035. The updated target reflects shifting priorities within the Alliance as the war in Ukraine drags into its fourth year.

Unlike in previous years, the 2025 summit communique did not include an explicit condemnation of Russia's invasion. Still, the final statement reaffirmed support for Ukraine and said assistance to its defense industry will count toward the new spending benchmark.

President Volodymyr Zelensky met with U.S. President Donald Trump during the summit, where the two leaders discussed battlefield developments, Kyiv's need for additional air defense systems, and the potential for co-production of drones.

"They (Ukraine) do want to have the anti-missiles, as they call them, the Patriots, and we're going to see if we can make some available," Trump said. "They are very hard to get. We need them too. We are supplying them for Israel, and they are very effective."

Trump's remarks signal a potential boost to Ukraine's air defense capabilities, which have come under increasing strain amid intensifying Russian attacks.

Meloni tells Trump US must show ‘same determination’ on Ukraine as with Iran

“I said the same determination is needed to achieve two other important ceasefires,” Meloni said.

The Kyiv IndependentTim Zadorozhnyy