Breaking News
Rheinmetall Launches Construction of Lithuanian Ammunition Factory to Strengthen European Production.
On November 29, 2024, the German group Rheinmetall officially began construction on a new artillery ammunition production facility in Lithuania. This project, marking a milestone in strengthening the European defense industry, was inaugurated during a ceremony attended by Lithuanian Prime Minister Ingrida Šimonytė, Minister of Economy and Innovation Aušrinė Armonaitė, and Minister of National Defense Laurynas Kasčiūnas. The facility, located in the municipality of Baisogala, is expected to begin operations by mid-2026.
The factory will produce shells for advanced artillery systems such as the German PzH-2000 and French CAESAR, already in service with the Lithuanian army (Picture source: Rheinmetall)
The site will cover an area of 340 hectares and will focus on manufacturing and assembling 155 mm caliber ammunition to meet growing defense needs. Initial production targets include tens of thousands of shells annually, significantly enhancing the Lithuanian Armed Forces’ supply capabilities. This €180 million investment will generate approximately 150 local jobs and integrate local industries into the value chain.
This strategic project reflects Lithuania’s commitment to reducing its dependence on imported arms and ensuring greater control over ammunition production and supply. According to Lithuania’s Ministry of Defense, the initiative will shorten delivery times, avoid disruptions in international supply chains, and bolster national security.
Since the memorandum of understanding signed in April 2024 between Rheinmetall and the Lithuanian government, key milestones have been achieved, including granting the factory “national significance” status. This designation facilitated faster implementation through favorable investment conditions. In June 2024, an additional agreement was signed between Rheinmetall and Minister Aušrinė Armonaitė, establishing detailed terms of cooperation.
The factory will produce shells for advanced artillery systems such as the German PzH-2000 and French CAESAR, already in service with the Lithuanian army. This production is part of a broader strategy to strengthen industrial partnerships between Lithuania and its European allies, particularly Germany. Prime Minister Ingrida Šimonytė emphasized that the project underscores the urgent need to secure supply chains and strengthen Lithuania’s defense capabilities amid growing security challenges in Europe.
Armin Papperger, CEO of Rheinmetall AG, expressed his satisfaction with the collaboration, stating that the project highlights Rheinmetall’s role as a cornerstone of national and international security. Minister Aušrinė Armonaitė underscored the importance of developing national weapons production infrastructure to address security needs while stimulating the local economy.
Finally, Defense Minister Laurynas Kasčiūnas called this project historic for Lithuania’s national security, praising the joint efforts that made it possible. By integrating local companies and creating new jobs, the factory will strengthen Lithuania’s industrial ecosystem while meeting the increasing demands of its armed forces.
In conclusion, Rheinmetall’s initiative in Lithuania represents a significant step toward autonomy in defense equipment production while consolidating strategic relationships within the European Union. With operations set to begin in 2026, this project could become a model of industry-government collaboration to address future security challenges.