Lake City Ammo Factory Responds to Ammo Shortage Rumors

On the morning of October 31, Lake City Ammo Factory posted on its official Facebook page that “Joint Munitions Command has not changed its policy regarding commercial production at Lake City.” Furthermore, the post went on to state unequivocally that “Lake City has not canceled commercial contracts.”

That’s big news from Lake City Ammunition Factory, one of the biggest producers of commercial 5.56 ammo in the US. It’s also a bombshell for ammo buyers, who have been clearing out the shelves of their local shops out of fears that ammo may become scarce.

The Context

Lake City canceling its contracts would be a big deal. It’s the largest small arms ammunition factory in the world, churning out around 1.6 billion rounds annually. The plant produces 5.56x45mm NATO/223 Remington, 6.8mm, 7.62x51mm NATO/.308 Winchester, .50 BMG, 9mm, and 10mm cartridges.

If you’ve been shopping for 5.56 over the last month, chances are you’ve noticed something is amiss. After a summer that saw prices falling to their lowest point since 2020 (about 20 cents per round), October saw prices spiking up more than double – maxing out at around 50 cents per round:

5.56 ammo pricing since March of 2021. Source: ammopricesnow.com

There were several reasons for that spike. But the biggest has included rumors circulating online that the factory had cut production of civilian ammo. This has resulted in gun owners panic buying ammo and sending the price of 5.56 into the stratosphere. The rumor was perpetuated by many FFL holders, who used it as an opportunity to increase the price of their ammo stocks.

The rumor didn’t just appear out of nowhere. Last year, the Biden administration announced that it wanted Lake City to shut down production of civilian ammo. Many observers thought that those chickens had finally come home to roost. But apparently, that’s not the case.

Looking Forward

Will Lake City Ammunition Plant’s announcement quell the rising tide of 5.56 prices? That remains to be seen. Unlike the vast majority of ammunition factories in the US, Lake City is owned by the military, so we likely wouldn’t see other plants canceling their civilian contracts.

For now, the inflated price of 5.56 is holding strong, and the country is ramping up for election season, which historically triggers spikes in ammo prices. We’ll keep an eye on this situation as it develops.