SDR: UK to build six new munitions factories

Under the Strategic Defence Review (SDR), the UK’s Labour Government has committed to building at least six new munitions and energetics factories in the UK to recapitalise the country’s supply of ammunition. The review, which was released on the 2nd June, states that £6 billion ($7.68 billion/€7.08 billion) will be invested in munitions as well as £1.5 billion ($2.04 billion/€1.785 billion) in an “always on pipeline” and the new factories. This will form a critical element of making Britain battle ready, as Prime Minister Keir Starmer has vowed to do. 

The “always on pipeline” is expected to lay “the industrial foundations for production to be scaled up at speed if needed.” It likely represents a reversal of the prevailing norm for British munitions factories over the past three decades. A lack of significant orders has resulted in a feast and famine situation, whereby a single large order might be placed and then no further orders for over a decade. 

This makes maintaining that factory, its staff, and most importantly the supply chain, an expensive and potentially unpopular business decision. It results in production scales for artillery ammunition measured in tens of rounds per day – rather than the hundreds that would be required in a large-scale war, and production timelines for missiles that can be measured in years. 

Part of the £6 billion in funding will no doubt be earmarked for the up to 7,000 long-range weapons that the Labour government has said it will build in the UK, apparently supporting up to 800 jobs. The UK is also in need of replenishment for its ammunition stocks, with much of its conventional ammunition stockpiles – which were not significant anyway – donated to Ukraine.

The SDR further recommends that the UK pre-position ammunition in Europe and disperse its stocks around the UK, too. This is of course sensible and necessary for a potential conflict with Russia, especially given the country’s planning assumptions around delivering calibrated doses of damage to an opponent in the early stages of a conflict. Ammunition depots and other military infrastructure could be valid targets in that scenario, so dispersing them is a sensible route to having a more survivable force. 

The SDR and the UK’s ammunition landscape

Armourers wait to re-arm a 656 Sqn, 4 Regt AAC Apache D with Hellfire AGM-114N Air-to-surface Missiles and 30mm rounds for the M230 Automatic Chain Gun during Exercise SPRING STORM 23 at a live fire coastal range in Estonia. Credit: AirTpr David Allen AAC/UK MOD © Crown copyright 2023.

The UK’s conventional ammunition supply is dominated by BAE Systems under the Next Generation Munitions Solution, a framework agreement signed in 2020 which will last for 15 years. The agreement was valued at £2.4 billion ($3.07 billion/€2.83 billion) when it was signed, and has led to a number of investments in BAE’s production capabilities including the development of a new method for synthesising energetics. BAE supports artillery ammunition, as well as small arms and the Cased Telescoped 40 mm round fired by the Ajax vehicle. In terms of missile production, the UK has a strong partner in the form of MBDA, manufacturer of the Spear 3 cruise missile, potent Brimstone anti-armour missile as well as a range of air defence and air-to-air missiles. Thales supplies more tactical missiles like the LMM, Starstreak, and NLAW. 

However, other capabilities like the guided missiles fired by the UK’s M270 Multiple Launch Rocket Systems (MLRS), come from America, as will the extended range versions that appear to be a key element of the Army’s concept of operations. The Javelin anti-tank missile is also produced in the US, as are the Joint Air-to-Surface Missiles (JAGM) that were selected for the country’s Apache helicopter fleet, and the AGM-114N Hellfires that the UK also uses with its MQ-9s. And, without an additional investment in the UK, it is likely that the 120 mm ammunition for the Challenger 3 fleet will be built by Rheinmetall in Germany. 

So, much of the UK’s domestic industry is able to cover the primary needs, however, if the expansion does occur, it would be valuable to bring other companies and capabilities into the mix. This could, and should, include investment in MBDA to deliver capabilities that are now non-discretionary like Spear 3 for the UK’s F-35Bs, and Brimstone for the Army’s Battle Group Organic Anti-Armour requirements. Moreover, there are many other suppliers around the world with established credentials in ammunition production, and adding them to the UK’s ecosystem could help reach the “always on” status that the SDR is calling for. It could also bring fresh capabilities to the UK’s export offering, which is further key to the Labour Government’s plans for growth. 

Calibre comment

Matthew Savill, Director of the Military Sciences team at RUSI highlighted that the SDR fails to provide a “real sense of the tradeoffs, the compromises and the choices,” when it comes to spending, in an interview with the Independent. All elements are made equally critical – from the digital targeting web through to enhanced homeland defence and improved housing for the armed forces. The Labour Government may decide what the priorities are within its own deliberations and in its funding conversations over the next few months, which will establish the targets and procurement programmes. However, there should have been more emphasis placed on the importance of munitions and munitions production. In the first few days of Russia’s invasion, Zelensky is reported to have told the US, “I need ammunition, not a ride.” Whether he did say this or not, the sentiment is key – you cannot fight a war without ammunition. The UK has very little ammunition, and very little in the way of production capacity, both challenges that are acknowledged within the review. However, no amount of AI-enabled digital targeting and autonomous platforms will deter an opponent if there is no ammunition to fire at them. 

By Sam Cranny-Evans, published on 5th June, 2025. This is the third Calibre article on the SDR, you can find the other two here: SDR: F-35As and tactical nukes for the RAF? and here: SDR: UK sets goal of 12 SSN-AUKUS boats from late 2030s.

The featured image shows a port side 7.62mm General Purpose Machine Gun (GPMG) on HMS Lancaster. Ammunition for these weapons is supplied by BAE Systems. Credit: LPhot Kyle Heller/UK MOD © Crown copyright 2023.