The European Commission has allocated $188.2 million (€168.2 million) to eight projects aimed at boosting Europe's defence production capacity under the European Defence Industry Programme.

The projects are expected to mobilise $1.41 billion (€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 on Wednesday.

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 tonnes 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.