BAE Systems is to restart production of parts for the M777 howitzer for the US Army as demand for the artillery weapon has surged following its performance in Ukraine.

Britain’s biggest defence contractor has signed an initial agreement worth $50mn with the US Army to kick-start a new programme while it finalises the details of a broader contract.

The move is the latest example of how the war and resurgent government interest in bolstering arsenals are reviving once moribund production lines.

BAE said it had seen a sharp increase in interest in the weapon from countries across Europe, Asia and the Americas since the conflict in Ukraine began in February 2022. The US, Canada and Australia have all donated M777s to the Ukrainians.