Sweden invests in security of supply of ammunition
Eurenco produces explosives and propellants, including for the Archer SPH. (BAE Systems Bofors)
The Swedish government is investing SEK500 million (USD52.4 million) in state co-financing for Swedish companies seeking EU funding through the European Defence Industry Programme (EDIP), Sweden's Ministry of Defence (MoD) announced in a press release on 12 August 2026. The investment specifically targets bottlenecks in explosives and ammunition production.
Identifying the availability of ammunition at all readiness levels as a significant security interest for Sweden, Swedish Defence Minister Pål Jonson called on Sweden individually and together with other Nordic countries to ensure the robust and sustainable supply of ammunition in peace, crisis, and war. He said the security of supply of ammunition initiative would contribute to reducing bottlenecks in the supply chain that limit overall production capacity.
The security of supply for ammunition initiative will draw from the SEK25 billion of opportunity purchase funds approved by the Riksdag, the Swedish parliament, in Sweden's 2025 second quarter amended budget. This will provide the possibility of state co-financing of companies' applications for EU funds for investments in measures to increase production capacity within the framework of the EDIP. The EU initiative aims to strengthen and modernise Europe's defence industry, increase production capacity, and ensure cutting-edge technology, resilience, and robust supply of military equipment to EU member states.
The EDIP Energetic Components call for projects aims to contribute over EUR165 million (USD191 million) to European companies to strengthen production capacity of gunpowder, explosives, and other key components of ammunition.
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