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Hungary

Rheinmetall, a leading company in the civil and defense industries, is embarking on a significant expansion with the construction of a new plant in Szeged, Hungary. This facility marks Rheinmetall's first major hybrid site, with an estimated cost of 63 million euros ($68 million). The plant will cover 15,000 square meters (161,000 square feet) on an 85,000 square meter (915,000 square feet) area.

Part of Rheinmetall's power systems division, the plant will focus on advancing control technologies and digital applications for automotive and energy sectors. It will manufacture electrical components, including nanostructure capacitors, and develop hydrogen-utilizing capabilities for mobility and energy regeneration.

Additionally, a portion of the facility, occupying a tenth of the production area, will cater to the military business of the electronic solutions division. Operations at the site are scheduled to commence in August 2025.

Rheinmetall's expansion comes amid efforts to address the depletion of arms reserves in Europe due to the ongoing Russo-Ukrainian war. In 2024, the company initiated the construction of plants in Unterlüß, Germany, and Várpalota, Hungary, with plans for a third factory in Lithuania. Moreover, Rheinmetall has forged a direct partnership with the EU, securing $140 million in funding for the ramp-up of artillery shell production.