Is this Swedish start-up the answer to Europe's ammunition shortage?

Euronews

13 hours ago

TNT, or trinitrotoluene, was first developed in the late 1800s in Germany. It was initially produced as a yellow dye and only 30 years after its invention were its explosive properties discovered.
It is now the most commonly used military explosive. And, after years of underinvestment and rise in demand due to Russia's invasion of Ukraine, in short supply in Europe.
Sovereign defence is a hot topic right now, with the EU committing billions of euros in a bid to increase the bloc's military capacity.
Some research suggests Russian ammunition production capabilities outweigh Europe's 4:1, though others think it could be as much as 6:1, and although Europe is home to some ammunition production giants such as Rheinmetall, BAE and KNDS, they don't produce their own TNT.
In this episode of The Big Question, Joakim Sjöblom, CEO and co-founder of Sweden Ballistics (SWEBAL), sat down with Euronews' Mared Gwyn Jones to discuss increasing Europe's TNT production capacity, along with the economic and security benefits.
Does Europe produce any TNT?
There is currently one TNT producer in Europe, which is Nitro-Chem based in Poland, and much of their product is exported away from the EU. In April 2025, Nitro-Chem signed a $310 million (€269m) deal to supply 18,000 tonnes of TNT over a 3 year period, destined for the US military.
It's estimated that Russia has an annual resource of 4.5-5 million artillery shells per year–with around 2M coming from allies North Korea. Europe's output was roughly estimated at 600,000 shells in 2023 and working together with the US, the 2024 output was estimated at 1.2million shells. The NATO deterrence philosophy is linked to the idea that the likelihood of conflict is significantly reduced if both parties are equally armed. There's around 10kg of TNT in every shell. In order to produce a comparable amount to Russia, Europe would therefore need a supply of roughly 50,000 tonnes of TNT.
While Nitro-Chem produces a good amount of TNT for Europe, supplies aren't currently sufficient, and the bloc relies heavily on Asian producers. Joakim fears the consequences of relying on external producers and only one local producer.
'If we go back to the COVID pandemic, we saw that the UK was producing vaccines but they were applying an export ban to it,' he recalls.
'If something were to happen in Poland, I am very certain there would be an export ban on TNT. Same goes for the Asian country that is currently exporting TNT. If there's a conflict in their proximity, there will be an export ban.'
China is one of the world's largest producers of TNT, although NATO countries exclude the country from their supply chains.
Increasing TNT production in Europe
Joakim's company SWEBAL is bringing TNT production back to Sweden and aims to be producing 4,500 tonnes per year of TNT at full capacity, enough for 400-450,000 shells by 2027. Whilst this isn't enough to plug Europe's shortfall, Joakim described it as a 'significant contribution' nevertheless.
'So Sweden used to have TNT manufacturing until 1998,' Joakim explained.
'But during this time when there was a lot of demilitarisation, you could refurbish TNT from the shells that you were demilitarising and the mining industry could get TNT almost for nothing. So there was no commercial incentive to run a TNT manufacturing plant in the 90s.'
'And now we're paying the debt for that,' he added. 'So we are actually building our plant 30 minutes from the old plant in Sweden and we're also building just three kilometres from the Alfred Nobel Dynamite factory, so we're building on very historical ground.'
With the right planning, Joakim is confident the growing industry could not only increase the bloc's security, it could provide economic benefits too.
'European member states are spending €200 billion every year on defence material. More than 60% of that is purchased from American producers.
'If those components were to be manufactured in the EU, we would create more than 10 million jobs,' he added.
SWEBAL is aiming for all of the machinery, materials and production in their supply chain to be sourced within a 550km radius. Not only is this good for the local economy, it helps to reduce lead time. Asian imports currently take over two months to arrive, as shipping is redirected around the Horn of Africa to avoid the Suez Canal.
Building a European defence industry
But while SWEBAL invests in scaling up production, is there significant funding for the European explosives industry?
The EU's ReArm Europe 2030 plan could release up to €800 billion over the next four years, which includes a €150 billion loan instrument called SAFE (Security Action for Europe) to help member states prioritise homegrown companies.
However, Joakim said procurement orders are not coming in from armed forces and member states as quickly as they are being asked to scale up.
'The risk profile is suboptimal right now. The industry needs to carry a lot of risk, which is a benefit as a new player in the industry, because we don't have the same shareholders to cater for and we don't have the same stock price that we consider on a quarterly basis,' he told The Big Question.
'My job here is to make sure that we prevent a future conflict, and making short-term profit is not high on my agenda.'
Joakim also highlighted another limiting factor for the industry in Europe.
'One of the biggest risks that I see in the European military is that we are not harmonised. So intercompatibility: the tanks of this country should be compatible with ammunition from another country.'
'And in order to achieve that, the market also needs to evolve… To use a famous quote, 'you either have an army or you have another country's army in your country'. So I think the price we pay if we don't do it is going to be even higher.'
The Big Question is a series from Euronews Business where we sit down with industry leaders and experts to discuss some of the most important topics on today's agenda.
Watch the video above to see the full discussion on European TNT production.