Sweden investment in ammunition from Rheinmetall, Nammo
The Swedish Defence Materiel Administration (FMV) has finalised two artillery ammunitions contracts with Nammo and Rheinmetall Denel Munition.
The deal worth a total of more than Skr5bn ($525.2m) is claimed to be the largest investment in artillery ammunition in Sweden since the 1980s.
Sweden Defence Minister Pål Jonson said: “With this order, we are strengthening Sweden’s defence capabilities. It is an important investment in security for Sweden and Nato.”
Under the more than Skr4bn contract with Rheinmetall Denel Munition, the FMV has requested for the delivery of artillery shells and propellant charges intended for the Archer artillery system.
Rheinmetall Denel Munition is a subsidiary of the German defence enterprise Rheinmetall and the South African state-owned firm Denel.
Delivery for the order with Rheinmetall is set to span from 2025 to 2027.
The deal with Rheinmetall Denel Munition aims to bolster the long-term availability of compatible ammunition for use within the Archer system.
As part of the framework agreement with Nammo Sweden worth SKr1bn, the FMV will procure Nammo’s 155mm high explosive extended range (HE-ER) artillery shells.
This agreement also facilitates the supply of propellants for the Archer system.
The 155 mm HE-ER artillery shells can reach targets up to 40km away.
Nammo CEO Morten Brandtzæg said: “This agreement not only strengthens the resilience and interoperability of Nordic defence, but also underlines our shared commitment to securing a reliable supply of advanced artillery ammunition for the future.”
This framework agreement serves as an extension of an ongoing strategic partnership aimed at improving artillery ammunition production capacity within Sweden and the Nordic region. The initiative is supported by FMV, the Swedish Armed Forces, and the EU Commission.
The commencement of deliveries under the agreement with Nammo is anticipated for 2028.
The FMV said that the agreement with two suppliers enhances the long-term stability of artillery ammunition supplies, which includes both shells and propellant charges. There has been supply shortage of these ammunitions in the global market following Russia’s comprehensive invasion of Ukraine.
In June 2025, Sweden, Denmark, Finland, and Norway entered into a strategic partnership agreement (SPA) with Nammo to strengthen ammunition supply and defence readiness.
