Pentagon Spends Nearly Half a Billion Dollars on Texas Ammunition Plant That Yields Zero Shells

The U.S. Army has invested nearly $500 million in the construction of an ammunition factory in Mesquite, Texas, intended to bolster the production of 155 mm artillery shells for military use and support for Ukraine. However, according to a recent Department of Defense Inspector General (DOD IG) report, this facility has yet to produce even one shell since its launch in May 2024. The DOD IG's findings highlight significant delays and inefficiencies that have plagued the project from the outset.

The Mesquite factory was conceived as part of rapid contracting efforts initiated by the Army to expedite ammunition production following Russia’s invasion of Ukraine in 2022, which saw a dramatic increase in demand for artillery shells. The goal was ambitious: to scale up monthly production of M795 High Explosive rounds from approximately 14,000 to over 100,000 by leveraging new facilities like the one in Texas.

Despite these lofty ambitions, the factory has struggled to meet its operational targets. In February 2026, Brent Ingraham, Assistant Secretary of the Army for Acquisition, Sustainment, and Technology, expressed dissatisfaction with the plant's performance during a congressional hearing. He noted that the facility was not on track to deliver any shells by its projected deadline.

The DOD IG report further underscores these issues, noting that while other ammunition plants are producing parts at a rate sufficient to create 46,000 rounds per month, the Mesquite factory remains idle. This discrepancy highlights the critical nature of timely production in meeting military and international obligations.

One significant factor contributing to the plant's failure is its reliance on older machinery originally designed for M107 shells, an outdated model that has since been replaced by the more advanced M795 rounds. The decision to adapt existing equipment rather than invest in new machines was seen as a high-risk strategy aimed at accelerating production timelines.

However, this approach proved problematic, with the IG report indicating that the adapted machinery failed to produce acceptable parts for the newer shells. As a result, the Army ordered the Mesquite plant to cease operations and halt all spending on the project in August 2025, a directive that remained in place through at least April 2026.

The DOD IG report also raises concerns about the allocation of funds. With nearly half a billion dollars spent on this singular facility without any tangible output, there are questions about whether these resources could have been better utilized elsewhere within the Department of Defense or directed towards other critical military needs.

This situation underscores broader challenges faced by the U.S. military in rapidly scaling up production capabilities to meet unexpected demands, particularly amid ongoing conflicts and shifting strategic priorities. The inefficiencies highlighted at the Mesquite factory serve as a cautionary tale regarding the risks associated with expedited contracting processes and the potential pitfalls of cutting corners in defense procurement.