Independence, Missouri – The U.S. Army has officially begun construction on a new state-of-the-art ammunition production facility at the Lake City Army Ammunition Plant in Missouri, marking a major step forward in the military’s modernization efforts.
The 450,000-square-foot plant will focus on producing the Army’s new 6.8mm ammunition for the Next Generation Squad Weapon (NGSW) program, which aims to replace the long-serving M4 carbine and M249 Squad Automatic Weapon.
The groundbreaking ceremony, held on February 5th, 2025, was attended by military officials, defense industry leaders, and key stakeholders. The facility is being built under a partnership with Olin-Winchester, the prime contractor responsible for operating Lake City’s production lines.
“This moment marks a significant milestone in our efforts to rebuild the arsenal of democracy and equip our warfighters with the safest, most reliable, and most lethal ammunition,” said Maj. Gen. John T. Reim, Joint Program Executive Officer for Armaments and Ammunition. “Victory on the battlefield starts here in our production facilities.”
Why the 6.8mm Round Matters
The 6.8x51mm cartridge, originally developed by SIG Sauer, is designed to provide greater range, accuracy, and stopping power than the traditional 5.56mm and 7.62mm rounds. Utilizing a hybrid bi-metallic case of steel and brass, the new cartridge can withstand pressures up to 120,000 psi—almost double that of standard brass cases—resulting in higher velocities and improved ballistic performance.
The Army’s XM7 rifle and XM250 automatic rifle, both manufactured by SIG Sauer, will fire the new round. These weapons are already being fielded by select Army units, including the 101st Airborne Division and the 30th Armored Brigade Combat Team of the North Carolina Army National Guard.
A Massive Boost to U.S. Ammo Production

Once operational, the new Lake City facility will have an annual production capacity of 385 million cases, 490 million projectiles, and 385 million load-assemble-pack operations for 6.8mm ammunition. This expanded capability will ensure the military has a steady supply of high-performance rounds for training and combat.
“The demand for high-quality, combat-ready ammunition has never been higher,” said an Army official. “In modern warfare, small arms ammunition is one of the most rapidly consumed resources, and this facility will help ensure our soldiers are always equipped for the fight.”
To put things into perspective, the U.S. has supplied over 500 million rounds of small arms ammunition to Ukraine since the start of the war with Russia. In 2005, at the height of U.S. combat operations in Iraq and Afghanistan, Lake City produced 1.34 billion rounds to meet the military’s needs. This new facility will reinforce America’s ability to sustain large-scale ammunition production in times of crisis.

Economic and Strategic Impact
The plant’s construction is expected to provide a major economic boost to the Kansas City region, with 90% of the project’s work supported by local businesses. Once completed in 2026 and fully operational by 2028, the facility will create new jobs and strengthen the U.S. defense industrial base.
In an era of increasing global threats, the Army is making it clear that ensuring ammunition supply is a top priority. With this new investment, the military is taking a proactive approach to strengthening its firepower and maintaining battlefield dominance well into the future.
Live Inventory Price Checker
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WINCHESTER LAKE CITY 5.56 62 GRAIN M855 GREEN TIP FMJ + Ammo Can | Bereli | $ 525.00 |
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Winchester Lake City 5.56 55 Grain M193 FMJ (Case) | Ammunition Depot | $ 454.99 |
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Lake City 5.56 NATO M855 62 Gr | Midsouth Shooters Supply | $ 24.99 |
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WINCHESTER LAKE CITY 5.56 62 GRAIN M855 GREEN TIP FMJ + Ammo Can | Bereli | $ 275.00 |
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NY Times Targets Lake City for Making Ammo Used in Mass Shootings
SIG SAUER Announces the Commercial Introduction of the MCX-SPEAR Rifle
Does anybody else have any concerns that now one company, SIG, will make all of our military’s small arms?
The side arm, the rifle, the machine guns…
Not even FN had it that good. Beretta still made the M9. And FN had to fight with Colt over M16/M4 contracts, though as years went by, FN pretty much took over for Colt.
IDK about this. before this new .277 round can penetrate level 4 armor on a moving/running target at 600 yds, one must first strike it with precision. given the high cost with the XM7 project and its ammo, applying a similar optics package and a suppressor to all existing M4A1s would offer troops what they need to win in real world engagements. scrap the high pressure 855A1 ammo, as well. our 77 grain Mk 262 performs in 10.3″ through 20″ barrels without burning them up.
The US never learns, more gravel belly mentality that gave us the M14. Firepower is what wins engagements, not the one shot one kill mentality. Heavier rifle, less ammo, barrel burning pressures and a rifle that will not function when the suppressor is removed. One more thing, you better not remove that suppressor or you will instantly lose your hearing.