AMERICAN CASTING EQUIPMENT

Starting a Small Ammunition Manufacturing Business: A Practical Guide

By American Casting Equipment  ·  February 2026  ·  9 min read

The ammunition market has seen sustained demand and recurring supply shortages over the past decade. For enterprising shooters with casting and reloading skills, small-batch ammunition manufacturing can be a viable business. This guide covers the realistic requirements — legal, equipment, and operational — for getting a small ammo operation off the ground.

Disclaimer: Ammunition manufacturing is heavily regulated. This guide provides general information only. Consult an attorney familiar with federal and state firearms law before starting any commercial ammunition operation. Requirements vary significantly by state.

Federal Licensing Requirements

Selling ammunition commercially in the United States requires a Federal Firearms License (FFL). Specifically, ammunition manufacturers need a Type 06 FFL — Manufacturer of Ammunition. This is distinct from a dealer's license and involves ATF oversight, record-keeping requirements, and regular compliance reviews.

The Type 06 application is submitted to the ATF, involves a background check, a compliance inspection of your proposed manufacturing location, and a fee. Processing time varies but typically runs several months. Operating without the appropriate FFL is a federal felony — there are no workarounds or gray areas here.

State and Local Requirements

Beyond federal licensing, many states have their own ammunition manufacturing regulations, zoning restrictions on manufacturing facilities, and business licensing requirements. Some states are straightforward; others have significant additional hurdles. Research your specific state's requirements early in the planning process.

Equipment for Small-Scale Production

A small commercial cast bullet operation needs equipment that can sustain production volumes manual casting simply can't deliver. Here's the core equipment chain:

EquipmentPurposeProduction Scale
Automated casting machineProduce cast bullets at volume300–600+ bullets/hour
Lubricator-sizerSize and lube cast bulletsMatches casting output
Progressive reloading pressAssemble finished cartridges500–1,200 rounds/hour
Case prep equipmentClean, trim, and prep brassMust match press speed
Alloy smelting setupProcess raw alloy into ingotsBatch process
Quality control toolsCheck weight, diameter, OALSampling process

Production Economics

The economics of small-batch cast ammunition are driven by a few key variables: alloy cost, primer cost, powder cost, brass cost (or recovery rate on range brass), and labor. Cast bullets are where you have the most control and the most potential savings — casting your own from reclaimed alloy versus buying jacketed bullets is often the difference between a profitable operation and an unprofitable one.

A realistic small operation might produce 5,000–10,000 rounds per week. At that volume, automated bullet casting is not optional — it's the foundation. Manual casting at this scale would require full-time casting labor just to keep the loading press fed.

Market Opportunities for Small Manufacturers

Quality Control Essentials

Commercial ammunition must meet consistent standards. Customers who buy your product expect it to function reliably and safely. Minimum quality control for a small operation includes:

Production-Grade Bullet Casting

The M2R Automatic Casting Machine is designed for exactly this application — consistent, high-volume cast bullet production for serious hobbyists and small commercial operations.

View the M2R Machine