The US Army revealed on Friday that it had been given a roughly $1 billion deal to enhance the manufacturing of 155 mm artillery shells, which Ukraine uses extensively.
According to the $993.7 million deal, General Dynamics Ordnance & Tactical Systems and American Ordnance LLC will compete for individual orders of the rounds.
It said that the goal was to create 12,000 to 20,000 extra rounds monthly.
Under a transaction backed by the Pentagon’s Ukraine Security Support Initiative, the Army had previously given two other businesses orders for the same rounds worth $522 million.
Since the Russian invasion started almost a year ago, Ukraine and Russia have exchanged massive amounts of artillery shells.
A Pentagon official claimed in November that Russian forces were launching 20,000 artillery rounds daily.
Between 4,000 and 7,000 rounds were produced daily in Ukraine, beyond the capacity of allied Western producers to maintain up.
Since then, rates have significantly decreased as a result of both sides conserving ammo and the onset of winter.