European ammunition production is dependent on Chinese nitrocellulose

Europe is facing a serious shortage of nitrocellulose, which is used to produce explosives, gunpowder and solid rocket fuel.

This may cause difficulties in increasing the production of ammunition needed to replenish European stockpiles and support Ukraine.

Source. This was reported by the Financial Times, citing a source in the defence industry and European manufacturers.

Meanwhile, Russia, which is also increasing its ammunition production, has increased its imports of nitrocellulose from China over the past two years. According to data analysed by the UK's Royal United Services Institute, its purchases from China jumped from $3.4 million in 2022 to $7.18 million in the first 10 months of 2023.

Sweden's Saab has said that in the long term, companies may have to consider alternative ways of producing critical materials to protect Europe's "munitions ecosystem".

The Swedish group's chief executive, Mikael Johansson, told the Financial Times that nitrocellulose is an example of how defence companies will have to build new supply chains in a "multipolar world" where "it will not only be the Western rule-based order".

He added: "We have to think about like-minded countries and who we can work with in the long term, who we can trust."

BAE Systems, the UK's munitions supplier to the UK armed forces, said that while it had sufficient supplies of raw materials to produce munitions, it was "aware of potential concerns around the future availability of nitrocellulose" and was actively working with its partners to secure future supplies.

Rheinmetall, whose Nitrochemie subsidiary produces nitrocellulose, confirmed that it is considering setting up a lintel (tape) production unit in Lower Saxony as part of a new ammunition business.

Background. As reported, despite the sanctions, Russia has doubled its imports of raw materials for the production of explosives, including from the United States.