Kosovo is set to begin producing its first domestically made ammunition by late 2026, marking one of the most significant strategic defense projects the country has ever undertaken.

The ammunition factory will be built in Gjakova, on the grounds of the former “Ereniku” industrial complex — an area of more than 100 hectares that will be expropriated and transferred to the Ministry of Defense. The industrial zone will be dedicated primarily to ammunition production, with the potential to expand into other defense-technology projects in the future.

This development follows the agreement Kosovo signed on December 16, 2024, with the Turkish state-owned defense manufacturer MKE. The agreement includes construction of the factory, installation of machinery, training of local staff, and setting up production standards aligned with NATO requirements. The equipment and production lines are already being manufactured in Turkey.

The project comes at a time when Kosovo’s defense budget for 2025 has increased to €207.8 million, up by €54 million compared to 2024. This substantial rise reflects the country’s clear commitment to strengthening its military capabilities and developing its domestic defense industry.

Acting Prime Minister Albin Kurti has stated that local ammunition production will boost Kosovo’s security and military independence. Acting Minister of Defense Ejup Maqedonci has confirmed that the factory will be operational and ready for production no later than late 2026. He also emphasized that the industrial zone is expected to attract additional strategic projects, including both military and civilian drones “Made in Kosova.”