German defense company Rheinmetall is finalizing a major ammunitions supply contract worth potentially several billion euros, according to CEO Armin Papperger. This announcement came during a ceremony for a new ammunitions factory in Lithuania.
He noted that Rheinmetall is also negotiating with the German government on a satellite system delivery. Germany aims to increase its defense spending to 3.5% of its GDP by 2029, up from a 2% NATO target it just met in 2024, supported by a debt rule exemption approved in March.
Papperger mentioned that the domestic order situation looks promising, expecting a significant rise in 2026. He also indicated plans for a new drone factory in the Baltic states, possibly through a partnership with local companies.
Additionally, Rheinmetall’s joint venture with Italy’s Leonardo for military vehicles is progressing, with a recent contract for armored personnel carriers worth several hundred million euros and anticipated orders around 5 billion euros in the coming year.
With information from Reuters