The European Commission has announced funding for the first eight projects under the Industrial Reinforcement Action (IRA) pillar of the European Defence Industry Programme (EDIP). A total of €168.2 million has been allocated for their implementation. The EU expects that these public funds will help mobilise larger-scale private industrial investments and expand the production capacities of defence-related enterprises.
According to the European Commission, the supported initiatives are set to mobilise a total of €1.26 billion in industrial investment. The main priority is to increase the production of energetic components (propellants) used in missiles, drones and ammunition. These materials are a critical link in the supply chain: limitations on their production can constrain the output of finished products regardless of the capacities of assembly plants.
From 2027, the projects 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 propulsion systems for drones and missiles, 200,000 warheads for loitering munitions and 60 million rounds of ammunition. Production is planned across 17 sites in 14 EU Member States and Norway; the funding also includes measures to protect the facilities against physical and cyber threats.
The first call for proposals dedicated to energetic components (IRA-EC), published in June 2026, attracted strong interest, with 83 proposals submitted by companies from 23 EU Member States and Norway. The IRA pillar builds on and amplifies the results of the Act in Support of Ammunition Production (ASAP), an emergency instrument launched after Russia’s full-scale invasion of Ukraine to address immediate production bottlenecks in ammunition manufacturing.
The total budget of the EDIP programme is €1.5 billion. It aims to strengthen Europe’s defence industry, enhance its competitiveness and reduce dependence on critical supplies from outside Europe.
