Europe, long accustomed to periods of peace, is suddenly transforming into an industrial giant, where factories operate around the clock and investments flow like a river.
The conflict on the eastern borders of the continent has awakened the sleeping dragon of the defense industry, forcing countries to urgently create new capabilities for the production of shells and missiles.
This is not merely a response to the crisis, it is a step toward long-term independence in a world where geopolitics dictates the rules.
From satellite imagery to real factories
Satellite images from Sentinel-1 of the European Space Agency reveal a striking picture.
Of the 150 key facilities producing weapons and ammunition, one third is already expanding at an obviously rapid pace.
The total area involved exceeds 7 million square meters, the equivalent of one thousand football fields suddenly covered with conveyor belts and cranes.
This scale is three times faster than normal peacetime development, when industry focused on civilian goods such as cars and electronics.
The EU’s ASAP program, worth 500 million euros, has become the catalyst for this process.
It covers 88 sites, 20 of which are already under full renovation, new factories are being built, roads are being widened and heavy equipment is being installed.
Brussels is discussing a new tranche of 1.5 billion euros to strengthen other sectors, from long-range missiles to unmanned aircraft and air-defense systems.
This is not a one-off injection, but an effort to create a sustainable base that can withstand any disruption.
Rheinmetall and other titans change the rules of the game
At the center of this revival are several companies that quietly but steadily are redesigning the map of European defense.
In Várpalota in Hungary, Rheinmetall, in cooperation with the local holding company N7, has put into operation a massive ammunition plant.
The facility will soon expand to 120 hectares and by 2026 will produce 30-millimeter rounds for the KF41 Lynx armored vehicle, as well as 155-millimeter and 120-millimeter rounds for the Leopard 2 and Panther KF51 tanks.
This represents a tenfold increase, which will allow Europe to become less dependent on external supplies.
In Germany, in Schrobenhausen, MBDA received a 5.6 billion dollar contract from NATO for the production of up to 1,000 Patriot GEM-T missiles.
Since 2022, the factory has added nearly 94,000 square meters of production space, supported by the ASAP program.
Norway has also joined in: Kongsberg opened a new division in June 2024 with an investment of 62 million dollars, focusing on missiles with increasing capabilities.
The United Kingdom contributes through BAE Systems, which has invested over 150 million pounds in modernization since 2022.
An explosive-filling line is being put into operation in Glascode in South Wales, which will increase the production of 155-millimeter shells by 16 times.
These projects are quietly shaping the new face of the continent, where former car factories now produce artillery, and the supply chain adapts to military needs.
From supply chains to technological achievements
Despite the enthusiasm, the reality is daunting, the gap between plans and capabilities remains large.
European officials and industrialists admit that production is stagnating due to bottlenecks in raw materials and components.
Explosives such as hexogen and miniature jet engines are what is missing to meet demand.
Rheinmetall, together with N7, is already building an explosives factory in Várpalota to close the gap.
Supply chains add fuel to the fire, nitrocellulose and nitroglycerin, materials on which everything depends, are delivered intermittently, undermining autonomy.
BAE Systems responds with innovation, it is transitioning to synthetic explosives, which are cheaper and safer, using continuous processes.
This reduces risks and dependence on capricious raw materials, as the company’s development department notes.
The goal is clear, Europe wants to become self-sufficient in supporting allies such as Ukraine and to strengthen its deterrent power.
But success depends on politics, after the initial push, countries must coordinate to ensure investments do not go to waste.
Only with collective will can this sector become more than a mere lifeline, but a profitable branch of the economy, embedded in political production, like tires for tanks or drones for surveillance.
Comparison of ammunition production
Until 2022, the European defense industry was dormant, focusing on the minimal support of NATO.
Rheinmetall’s 155-millimeter shell production barely reached 70,000 annually and its total capacity was sufficient only for peacetime exercises.
Now, after two years of conflict, the numbers have skyrocketed, Rheinmetall plans to produce 1.1 million shells annually, a fifteenfold increase.
MBDA has shifted from one-off orders to contracts for thousands of missiles and BAE is increasing explosives production by 16 times.
In contrast to the Cold War, when emphasis was placed on nuclear arsenals and heavy equipment such as Leopard tanks, today’s boom shifts toward hybrid threats, unmanned aircraft, air defense and medium-range artillery.
Previously, investments were directed toward R&D. Now, they focus on expanding space by millions of square meters.
This does not cover the lost ground, but opens the way, Europe is breaking old barriers by integrating civilian technologies, like satellites for monitoring factories.
The advantages and disadvantages of expanding the defense sector
The expansion of the military-industrial complex brings obvious benefits but also risks that cannot be ignored.
On one hand, it creates jobs and stimulates the economy, the new factories in Hungary and Norway are already generating thousands of vacancies in related sectors, from logistics to metallurgy.
Supply autonomy reduces vulnerability, Europe depends less on imported explosives, which strengthens its geopolitical position.
On the other hand, supply chains remain fragile, the shortage of nitrocellulose could slow the entire process, as happened in 2023.
Environmental impacts are also questionable, the production of explosives requires strict controls to prevent damage to rivers and soil.
Political will may fade after the crisis, leaving “white elephants” in the form of idle production capacity.
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