The United States military produces approximately 1.5 to 1.6 billion rounds of small arms ammunition annually, and hundreds of millions of “leftover” rounds are sold commercially to maintain the production infrastructure and operational efficiency.
Nearly all of that ordnance is designed to very high standards, and is specifically engineered for extreme reliability, durability, and tactical performance. Military rounds need to be designed to function flawlessly in harsh environments, including mud and even freezing temperatures. Some sport shooters may take note that the reliability may sacrifice a small degree of long-range precision, especially when compared to high-end, match-grade civilian ammunition, but that is considered a necessary tradeoff for the modern warfighter.
The extreme durability of “mil-spec” ammunition is provided by sealed primers and heavy crimps to ensure water resistance and long shelf-life.
Last week, the U.S. Army announced that it has reached a new agreement to deliver even more reliable and durable ammunition. Federal Ammunition has executed an agreement to allow the United States Army to utilize the company’s patented Peak Alloy ammunition case technology for use in multiple cartridges and weapon systems.
“The new agreement specifies conditions necessary prior to granting Government Purpose Rights, such as the delivery of 40 million cases featuring the new technology,” the company confirmed.
The contract with the U.S. Army is inclusive of multiple chamberings, including .50-cal and below.
“This is a historic agreement between the United States military and Federal Ammunition,” says Chairman and CEO Jason Vanderbrink. “As a 104-year-old American company, it further demonstrates our unwavering commitment to innovation. As the world’s most prominent manufacturer of small-caliber ammunition, I am particularly proud of the speed at which our team can develop a product with a purposeful application that improves the advanced our brave American warfighters use in the field of battle.”
Peak Performance From New Alloy
Federal Ammunition’s Peak Alloy was first introduced in the commercial market in 2025 for the new 7mm Backcountry cartridge. According to the company, the Peak Alloy employs a “high-strength, proprietary steel alloy casing that enables significantly higher chamber pressure — in excess of 80,000 PSI — than traditional brass for higher velocities in smaller, lighter, shorter-barreled rifles typically configured for suppressors.”
That same alloy is stated to be used in the manufacturing of safes, nuclear reactors, and other high-strength applications. That can create the higher pressure, and with it higher muzzle velocities, which translates to less drop and wind drift downrange.
The casing is coated with nickel plating to prevent corrosion and rust, and quickly caught the attention of the U.S. military. Multiple allied European countries, including NATO member nations, are now evaluating the same case technology.
Training Ammunition Contract
This is the latest U.S. military contract awarded to Federal Ammunition, and it follows a September 2022 award for $114 million from the U.S. Army, the largest government contract in the company’s 100-year history.
That five-year contract was for the production of 5.56mm NATO training ammunition, specifically the AA40 5.556mm semi-jacketed frangible cartridge, Mk311 MOD 3, which is employed by the U.S. military branches in rifles and carbines chambered for this caliber for training. The frangible ammunition was developed to disintegrate into small fragments on impact, while the polymer compound round minimizes splashback and decreases ricochets, making it ideal for training applications.
In 2024, Federal Ammunition was also awarded a one-year, $3.6M contract to supply United States Special Operations Command (USSOCOM) with 7.62x51mm, 175-grain precision match rifle ammunition.
The company produces the ammunition for the United States military at its facility in Anoka, Minn.
However, the vast majority of U.S. military small-arms ammunition is produced at the Lake City Army Ammunition Plant in Independence, MO. The 3,900-acre government-owned facility, currently operated by Winchester, remains the largest producer of small-arms ammunition in the world.
