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A new contract valued at almost $1 billion aimed at increasing the production of 155 mm artillery rounds for Ukrainian aid was announced by the US Army, on Friday.

Under the $993.7 million contract, General Dynamics Ordnance & Tactical Systems and American Ordnance LLC will compete for individual orders of the rounds, a US Army statement read.

Given the use of these shells in large quantities by Ukraine, the statement noted that the production rate will be between 12,000 and 20,000 additional rounds per month.

Earlier, the US Army, through a deal funded by the Pentagon's Ukraine Security Assistance Initiative, awarded $522 million in orders for the same artillery rounds to two other companies.

Throughout the war in Ukraine, both Russia and Ukraine have fired artillery munitions at an increased rate. According to a US official, Russian forces have fired artillery munitions at a rate of approximately 20,000 rounds per day.

Ukraine, on the other hand, has consumed artillery munitions at a rate of 4,000 to 7,000 rounds per day. However, this rate remains higher than the collective West manufacturers' ability to produce.

It is worth noting that according to the US, the rate of consumed munitions has decreased on both ends, Russian and Ukrainian, since winter began.

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