Rheinmetall Starts Construction of Europe's Largest Gunpowder Plant

Rheinmetall has started construction of what will become one of Europe's largest and most advanced gunpowder production facilities at Aschau am Inn in Bavaria. The €500 million investment is designed to significantly expand Europe's capacity to produce propellants for artillery ammunition and other large-caliber weapon systems as NATO countries continue rebuilding depleted stockpiles. 

The project forms part of Rheinmetall's broader Firepower expansion strategy, which aims to strengthen Europe's ammunition industrial base following years of increased demand driven by the war in Ukraine. Bavarian Minister-President Markus Söder, Parliamentary State Secretary at Germany's Ministry of Defense Nils Schmid, and Bavarian Minister of Economic Affairs Hubert Aiwanger attended the groundbreaking ceremony. 

Production Capacity Set to More Than Double

The expansion will increase the Aschau site from 90 to 110 hectares. The facility currently produces around 1,700 tonnes of gunpowder and 300,000 propellant charge modules annually, operating around the clock.

Over the next two years, Rheinmetall plans to more than double production. Once fully operational, the expanded plant will add up to 2,500 tonnes of gunpowder, more than 5 million combustible molded components, and over 1 million modular propellant charge elements each year. Maximum production capacity is expected in 2028, while phased commissioning of the new facilities is scheduled to begin in 2027. 

Workforce Expansion Reflects Long-Term Demand

The Aschau facility has already experienced significant growth. Since 2022, its workforce has increased by approximately 80 percent, exceeding 800 employees. Rheinmetall plans to create several hundred additional positions, bringing total employment at the site to around 1,400 people.

According to Bavarian officials, the investment strengthens Germany's industrial base while supporting Europe's broader defense manufacturing capacity. 

A Critical Part of Europe's Ammunition Supply Chain

Gunpowder has become one of the most constrained segments of Europe's ammunition supply chain. Expanding production capacity has become a priority for NATO and European governments seeking to replenish inventories while maintaining support for Ukraine.

Rheinmetall is one of only a handful of European manufacturers capable of producing military-grade gunpowder at scale, alongside companies such as Eurenco and Nammo. The company has stated its longer-term objective is to increase annual gunpowder production to 20,000 tonnes by 2030, supporting Germany, NATO allies, and European Union member states. 

The investment illustrates a broader shift across Europe's defense industry, where governments and manufacturers are expanding production capacity not only for finished ammunition but also for critical energetic materials that underpin the entire artillery supply chain.

Frequently Asked Questions

Where is Rheinmetall building the new gunpowder plant?

The new facility is being built at Rheinmetall subsidiary Nitrochemie's site in Aschau am Inn, Bavaria, Germany. 

How much is Rheinmetall investing?

The company is investing €500 million in the expansion project. 

When will production begin?

Initial production at the new facilities is expected to start in 2027, with full production capacity planned for 2028. 

Why is the project important?

The plant will significantly expand Europe's production of military-grade gunpowder and propellant components, helping address ammunition supply shortages and strengthen NATO's industrial resilience.