The federal government is giving millions of dollars to two gunmakers to develop a plan to make more ammunition in Canada.
National Defense Minister Bill Blair made the announcement Thursday in a speech to the Conference of Defense Associations Institute in Ottawa.
He says the $4.4 million will go to IMT Defense and General Dynamics to develop detailed proposals to make more 155mm ammunition.
The deputy minister of National Defense told a House of Commons committee last fall that the two companies estimated it would cost $400 million to ramp up production.
NATO-standard 155mm ammunition is in short supply around the world due to the ongoing war in Ukraine.
Several of Canada’s NATO allies have already signed agreements to increase production to ensure there is enough ammunition to arm Ukraine in its fight against Russia.
To watch on video