EU allocates $188.2M to boost defense production under new program

The European Commission allocated Wednesday €168.2 million ($188.2 million) to eight projects aimed at boosting Europe's defense production capacity under the European Defense Industry Program.

The projects are expected to mobilize €1.26 billion in industrial investments to accelerate and expand the production of energetic components used in missiles, drones, and ammunition, according to a statement.

The projects, which will become operational from 2027, are expected to reduce manufacturing times by up to 90% and enable annual production of more than 20,000 tons of energetic materials, 3,500 drone and missile propulsion systems, 200,000 loitering munition warheads, and 60 million rounds of ammunition.

The investments will cover 17 production sites across 14 member states and Norway, while also strengthening their protection against growing physical and cyber threats.

The initiative builds on the EU's Act in Support of Ammunition Production, an emergency instrument introduced to address production bottlenecks and increase ammunition manufacturing capacity following the start of the war in Ukraine.