This is driven by Norway and Australia's involvement in the F-35 fighter program and the need for a new ammunition round capable of meeting all requirements and ensuring lethality against both soft and hard targets.
This will include cooperation on the Norwegian ammunition concept, APEX, and a special training round as well as Thales' frangible ammunition round called APFI.
The APEX development and qualification effort is now fully funded by the Norwegian Ministry of Defense and Nammo.
"This cooperation will create a new platform for ammunition business between two industry leaders," Kjell Kringsjå, executive vice president of Nammo's medium and large calibre division, said.
"Nammo's APEX concept is based on more than 20 years of heritage in the aircraft ammunition business with presence on nearly all fighter aircraft of NATO and in the western world.
"This will give the air forces superior performance both in the air combat role and in the close air support role."