Rheinmetall Plans Major Ammunition Production Expansion in Lithuania by 2026

Lithuania has entered a strategic partnership with German defense giant Rheinmetall, signing a memorandum of understanding to produce propellants domestically and initiate construction of a 300 million euro artillery ammunition factory expected to be operational by late 2026. This facility, located near Baisogala, will produce tens of thousands of 155 mm artillery shells annually and includes a Centre of Excellence with the capacity to produce several hundred thousand propellant modules per year. The venture is managed by Lithuanian-registered Rheinmetall Defence Lietuva, with Rheinmetall holding a 51% stake and Lithuanian state-owned companies owning the remainder. Lithuanian officials, including President Gitanas Nauseda and his national security advisor Deividas Matulionis, emphasize the country's ambition to expand its defense manufacturing capabilities and the favorable environment created to attract further investments. Discussions are underway about a potential second investment by Rheinmetall in Lithuania, alongside talks with U.S. and Scandinavian defense firms, contingent on political and financial support. This initiative represents one of Europe's largest defense industry investments and aims to address current limitations in European powder and propellant production.