Funding boost for British companies to supercharge UK munitions production

Funding boost for British companies to supercharge UK munitions production
22 companies, including British SMEs, will receive contracts worth up to £300,000 each to carry out feasibility studies on sites for new UK energetics manufacturing plants.
- 22 companies – including British SMEs from England, Scotland, Wales – to receive up to £300,000 each to develop proposals for the creation of new factories producing energetic materials used in munitions.
- Part of government’s work to rebuild the nation’s homegrown ammunition and energetics manufacturing capability, boosting defence readiness and re-industrialisation of Britain.
- The substances created will include explosives, propellants and pyrotechnics which are essential components of weapons including small arms, artillery, mortars, countermeasures, bombs and missiles.
Britain’s homegrown munitions manufacturing industry has been boosted today, with the Ministry of Defence (MOD) placing contracts with 22 companies to fund studies into possible sites for new energetic materials factories.
The contracts, worth up to £300,000 each, will benefit a number of small and medium sized businesses in England, Scotland and Wales.
Energetic materials are the explosives, propellants and pyrotechnics that are essential components of weapons and key to ensuring the UK’s ability to defend itself and deter threats.
The studies will help bring high-skilled manufacturing back to industrial communities across the UK, with work to focus on which sites could be used to build at least six new munitions factories.
The war in Ukraine shows the importance of the fast resupply of munitions by industry, and the studies are advancing the MOD’s work to re-establish a sovereign, ‘always on’ pipeline for munitions supply – boosting warfighting readiness and enhancing the UK’s ability to deter threats while providing skilled manufacturing jobs across the country.
Minister for Defence Readiness and Industry Luke Pollard MP said:
This Government is building the munitions and energetics factories of the future, restoring Britain’s sovereign manufacturing capabilities after decades of decline and helping us to re-industrialise. By investing across England, Scotland and Wales, we are strengthening our warfighting readiness and security of supply, while creating at least 1,000 high-skilled jobs in the future in communities that have long been the backbone of British industry and will be again.
Each of the companies selected by the MOD will receive funding of up to £300,000 each to develop detailed proposals to manufacture energetics materials and the appropriate sites which they should be based at.
In November 2025, the Government announced that at least 13 potential sites had been identified across the UK for the manufacture of munitions and explosives, including:
- Monmouthshire
- Cumbria
- Dumfries and Galloway
- North Ayrshire
- Shropshire
- Cheshire
- Derbyshire
- Essex
- Worcestershire
- Hampshire
- Pembrokeshire
- Falkirk
The studies follow £11.1 billion being allocated through the Defence Investment Plan for munitions and weapons – increasing UK stockpiles and ensuring our Armed Forces have the right ‘high-low’ mix of capabilities to defeat the full range of targets in the most efficient way.
The companies are expected to return their findings by the end of September 2026 with construction of the new energetics munitions factories planned to start by the end of 2026.
On completion of the feasibility studies, the top proposals will be offered Front End Engineering Design (FEED) contracts worth up to £5 million each to develop engineering designs for at least six new munitions and energetics factories.
Commodore Caroline Dix MBE, Deputy Director Lethality and Protect in National Armaments Director Group – Materiel, said:
National Armaments – Materiel is pleased to announce the award of feasibility study contracts to a diverse cohort of companies, from innovative SMEs to major defence primes and major chemical industry partners. This is a significant step towards rebuilding the UK’s sovereign energetics industry.
The studies will identify how we can grow UK production of the explosives, propellants and pyrotechnics that underpin military capability, driving investment, innovation and skilled jobs across the country.
Above all, it will help ensure the Armed Forces have a secure and resilient supply of the munitions they need to fight and win.