The European Commission allocated €168.2 million to increase production of energetic materials, including explosives and propellants used in ammunition, missiles and drones. The funding supports eight projects under the European Defence Industry Programme.

The programme is expected to leverage €1.26 billion in industrial investment. It aims to shorten manufacturing times and expand annual production capacity across 17 sites in 14 EU member states and Norway.

Starting in 2027, the stated annual production targets include more than 20,000 tons of energetic materials. The projects also aim to produce 3,500 drone and missile propulsion systems and 60 million ammunition units each year.

The initiative addresses the need to replenish stockpiles and support allies, providing a demand signal for companies in the aerospace and defense sector.