The Norwegian government has proposed NOK 516 million in its 2027 state budget to increase production capacity in the country's defence industry. The Ministry of Defence announced the proposal on 7 October.
— Norwegian and European defence industry must have production capacity and robust value chains to have the necessary preparedness and endurance, and to be able to continue supporting Ukraine's fight, said Defence Minister Tore O. Sandvik.
The funding will go towards more capacity for missile rocket motors and advanced military explosives, among other areas. According to the ministry, both are in short supply in NATO and in demand from Ukraine and its allies.
The money is part of a strategic defence-industry initiative worth about NOK 8.4 billion up to 2036, set out in the revised long-term defence plan. Norway has allocated just over NOK 5 billion to production capacity since Russia's full-scale invasion of Ukraine.
Norwegian companies can also apply for support through the EU's European Defence Industry Programme (EDIP). The ministry says that combined with national co-financing, this could lead to major investments in key Norwegian defence industry.
The measure is part of a proposed NOK 191.7 billion defence budget for 2027. The Storting must still approve it.