The United States is seeking to increase the Philippines’ stake in the ongoing geopolitical conflict by announcing plans for a new ammunition production facility in the country as part of a broader strategy to strengthen military manufacturing across the Indo-Pacific region.

President Ferdinand Marcos Jr. had earlier endorsed the US proposal.

The announcement came following the second annual plenary of the Partnership for Indo-Pacific Industrial Resilience (PIPIR), a US-led multinational effort to fortify regional defense supply chains and industrial capacity, on 18 March.

On ammunition, members said they would look into the Philippines hosting a new facility to load, assemble, and package 30-millimeter (mm) cannon rounds, which is widely used by military aircraft and ground vehicles.

In July 2025, President Marcos confirmed that the planned US-backed ammunition manufacturing hub in Subic Bay was a longstanding initiative under the Self-Reliant Defense Posture (SRDP) program, aimed at bolstering the Philippines’ national defense.

Marcos said the project had been in the works for months and would proceed even without US assistance.

“Even without US help, we would still pursue it,” Marcos said, noting that the US had offered support to complement the Philippines’ effort.

He acknowledged concerns that the facility could provoke China, which has been assertive in the West Philippine Sea, but he emphasized that the priority is safeguarding the country.

Moreover, it could put the Philippines in the crosshairs of America’s growing list of adversaries.

Defense Secretary Gilberto Teodoro Jr. earlier said the facility will operate under a commercial foreign direct investment model, initially employing 200 to 300 skilled workers, with potential expansion linked to downstream industries and port development.

Teodoro said the hub would help address global ammunition shortages and generate revenue for Subic.

The business case is still under review, with further details to be announced once they are finalized.

In a joint statement, the PIPIR members, including Australia, Canada, Germany, Italy, Japan, Lithuania, the Netherlands, New Zealand, Norway, South Korea, Singapore, Sweden, Thailand, the United Kingdom and the Philippines, reaffirmed their commitment to accelerating defense industrial cooperation.

The partnership reviewed and endorsed several new initiatives to strengthen collaboration and advance defense industrial resilience in the Indo-Pacific and globally, including the launch of a new Solid Rocket Motor (SRM) production program led by Japan in partnership with the US.

SRMs are critical propulsion systems for guided missiles, and expanding production beyond the US is seen as a hedge against supply disruptions.

Forward ammunition hub

The ammunition facility in the Philippines would focus on 30mm-by-173mm rounds, widely used in aircraft cannons and armored vehicles.

While still in the exploratory phase, the project underscores Manila’s emerging role in regional defense manufacturing and aligns with US efforts to bolster allies’ military self-sufficiency.

These efforts are part of PIPIR’s broader roadmap to integrate allied industrial bases, remove regulatory barriers, and accelerate production of critical systems.

Asked if the Philippines is prepared to host an ammunition hub, the Armed Forces of the Philippines (AFP) directed inquiries to the Department of National Defense (DND).

As of press time, the DND has not commented, and the AFP has been silent on the matter.

Expanding defense industrial base

The plenary also highlighted progress on other strategic projects, including the establishment of forward repair hubs for F-15 and F-16 aircraft engines in Japan, a CH-47 Chinook helicopter engine repair hub in South Korea, and the expansion of a regional sustainment hub in Australia to support P-8 radar-equipped aircraft.

The US has consistently cited supply chain vulnerabilities as a major challenge for modern military readiness.

By encouraging allies to manufacture and maintain equipment regionally, the US aims to ensure that crucial components are available where they are needed most.

On drones, PIPIR members pledged to develop common standards and shared supply chains for small military drones, including batteries and motors.

The goal is to streamline manufacturing and maintenance across national lines, enabling quicker deployment in operational scenarios.