Sweden is investing SEK 500 million (€45.3 million) in ammunition production and supply security, with the government using national funding to support defence companies applying for money under the European Defence Industry Programme (EDIP). The measure, announced by the Swedish government on 11 August, targets bottlenecks affecting the production of artillery components, small-calibre ammunition and explosives.
Sweden’s ammunition investment targets production bottlenecks
The funding will guarantee national co-financing for project applications submitted by EURENCO Bofors AB, Sweden Ballistics AB, Norma Precision AB, Nammo Sweden AB and JUNGHANS Microtec GmbH.
According to the government, the projects would expand manufacturing capacity for propellant charges and fuzes for the Archer artillery system, as well as small-calibre ammunition and explosives.
The Swedish Defence Materiel Administration (Försvarets materielverk, FMV) assessed the proposed projects according to their potential to address shortages and bottlenecks affecting ammunition considered important for the Swedish Armed Forces (Försvarsmakten) in peacetime, crises and war.
“Access to ammunition at all levels of preparedness is an essential security interest for Sweden,” Defence Minister Pål Jonson (Försvarsminister) said. He added that Sweden should work both independently and with the other Nordic countries to secure a robust and sustainable ammunition supply.
EU defence funding multiplies the Swedish investment
The Swedish money is intended to complement funding available through EDIP, the European Union programme designed to strengthen and modernise Europe’s defence industry and expand production capacity.
The European Commission’s first EDIP work programme has a total budget of €1.5 billion for 2025-2027, with more than €700 million dedicated to reinforcing European defence production.
One of its calls, focused on energetic components, provides more than €165 million for companies seeking to increase production of propellant powder, explosives and other components used in ammunition and weapons systems. The Commission said in June that 83 proposals had been submitted from companies across 23 EU member states and Norway. Combined with industry co-financing, the call could generate investments of up to €470 million.
For the Swedish projects, financing would therefore come from three sources: the EU, industry and the Swedish state. Stockholm argues that providing the national share increases the chances of Swedish-based projects receiving European funding while directing additional investment towards production capacity needed by its armed forces.
Ammunition supply is becoming a Nordic and European issue
The SEK 500 million allocation comes from a larger SEK 25 billion envelope approved by the Swedish Parliament (Riksdagen) in the 2025 spring amending budget for so-called opportunity purchases.
The measure also illustrates how Sweden’s defence industrial policy is increasingly connected with both Nordic cooperation and EU defence programmes. EDIP was formally adopted by the Council of the EU in December 2025 and includes measures specifically aimed at increasing manufacturing capacity and strengthening security of supply across European defence supply chains.
For Sweden, the immediate objective is narrower: reducing bottlenecks in the ammunition supply chain and increasing domestic production capacity. But the financing model links those investments to a wider European effort to expand defence manufacturing, while Stockholm is also framing reliable ammunition supplies as an area for deeper cooperation with its Nordic neighbours.
