Rheinmetall is expanding its facility near Munich to double its production of gunpowder as it looks to meet rising demand for ammunition.
As European governments dramatically increase defense spending amid the Ukraine war, one of the biggest challenges is producing enough ammunition.
"Without gunpowder, it's impossible to protect our people because at the end of the day, you need gunpowder for ammunition," CEO Armin Papperger told CNBC.
In Bavaria, hidden among forests and farmland beneath the Bavarian Alps, Rheinmetall's sprawling industrial site is undergoing a vast expansion known as "Project Firepower," which will transform it into one of Europe's largest gunpowder plants.
Gunpowder prices have spiked as the war in Ukraine depleted stockpiles.
Papperger noted that Rheinmetall has secured its own supply and built reserves, alleviating shortages of nitrocellulose.
The company aims to more than double gunpowder production by 2028 to 4,200 metric tons annually.
