Germany has procured thousands of 155-millimeter artillery shells for Ukraine and to replenish its own stocks, the country's defense ministry announced on June 6.
"An agreement has now been reached with a German arms company to produce and deliver thousands of projectiles to further support Ukraine and replenish its own ammunition stocks," it said in a statement.
"The financing requirement of almost 880 million euros ($958 million) will be covered by both the Bundeswehr's special fund and the regular defense budget."
While the statement didn't specify the number of shells procured, Reuters reported on June 4 that Berlin was looking to boost an existing order from the arms manufacturer Rheinmetall by 200,000.
The newly supplied shells should help to replenish German stocks as Berlin continues to assist Kyiv in defending itself against Russia's ongoing war.
The deal had already been worth 1.2 billion euros (around $1.3 billion) and included a hundred thousand shells, fuses, and charges.
By placing the order, the German Defense Ministry also wants to ensure that Rheinmetall can launch a new production line in the town of Unterluess in the central part of the country, Reuters said.
Since the all-out war in Ukraine started in February 2022, the value of Rheinmetall has more than quadrupled due to the growing number of orders from Kyiv's Western partners, according to the news agency.
Previously, the company said it would also build an artillery factory in Ukraine, along with facilities dedicated to the production of military vehicles, gunpowder, and anti-aircraft weapons.
During the Munich Security Conference in February, Rheinmetall CEO Armin Papperger signed a memorandum of intent with Ukraine's Strategic Industries Minister Alexander Kamyshin to produce artillery shells in another joint plant based in Ukraine.