Army spends $533 million on faulty artillery plant that never made a shell
The U.S. Army paid General Dynamics $533 million for a Texas artillery factory that produced no usable 155 mm shells, plagued by malfunctioning robotic equipment.
In response to the 2022 Russian invasion of Ukraine, the Army fast-tracked a $533 million contract with General Dynamics to build a new artillery shell factory in Texas, using Repkon equipment from Turkey. The rushed award bypassed competitive bidding and thorough testing, resulting in a plant where robotic arms ignited, steel components shattered, and workers had to manually force machines to operate. Despite months of delays and rumors of sabotage, the facility never produced a single compliant shell, and the Army halted two of three lines in August 2025 while still paying $26.3 million in progress payments.
The Army asserts it will recover costs through discounts on future orders, whereas General Dynamics maintains it fulfilled its obligations. The debacle highlights gaps in oversight and the risks of expedited defense procurement, prompting the contractor to explore new AI-driven solutions for future projects.
Why it matters
Taxpayer money was spent on a defense plant that failed to deliver, exposing flaws in rapid procurement processes.
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