Funding Eligibility
The New Economics of Scalable Ammunition Production
What does New Economics of Scalable Ammunition Production reveal about European defence funding, eligibility and procurement?
The war in Ukraine has upended assumptions about munitions supply, driving a structural surge in ammunition demand across NATO and the EU.
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Platform publication · DFM Analysis report · 2026-06-13
The war in Ukraine has upended assumptions about munitions supply, driving a structural surge in ammunition demand across NATO and the EU. In high-intensity combat, artillery shells, rockets and missiles are expended at rates unseen in decades, quickly exposing how Western stockpiles and production had dwindled after the Cold War. Russia’s invasion demonstrated that deterrence now requires credible stockpiles and output capacity: Moscow expanded its wartime ammunition production tenfold (to over 4 million shells annually by 2025), outstripping NATO’s pace and risking a loss of deterrence credibility if Allies cannot catch up.
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The New Economics of Scalable Ammunition Production
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The war in Ukraine has upended assumptions about munitions supply, driving a structural surge in ammunition demand across NATO and the EU.
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