NATO member Lithuania has launched a sizeable project to bolster its defense capabilities by building a cutting-edge production facility for artillery ammunition.
A land lease agreement and a supply contract for the procurement of 155mm ammunition were signed with German arms manufacturer Rheinmetall at a ceremony on Friday. The ceremony was attended by top Lithuanian officials, including Prime Minister Ingrida Šimonytė and ministers for economy and defense.
Our defense needs, the importance of the shortest possible supply chains, and strong allied partnership between Lithuania and Germany underscore the need to maintain the momentum as we continue to work in the same spirit of cooperation," said Šimonytė.
The new " state-of-the-art" facility, which will include a shell manufacturing and load assembly pack, will be built on an area of around 340 hectares (around 840 acres) in Baisogala, a small town in the central region of the country.
The facility is set to commence operations by mid-2026 and, once fully operational, will have the capacity to produce tens of thousands of 155mm artillery shells annually, according to an official release.
"In light of the growing security challenges, we must move beyond words and take concrete steps to strengthen our nation's defense capabilities," said Minister of the Economy and Innovation Aušrinė Armonaitė.
"By fostering large-scale investment projects and enabling local production of weaponry, we not only address national security needs but also reduce our dependence on arms procured from international markets."
Newsweek reached out to Lithuania's Defense Ministry and Rheinmetall for comment outside of standard working hours.
Lithuania has previously supplied ammunition such as that to be manufactured in the plant to nearby Ukraine.
The European Union member Baltic state has sought to ramp up its defenses as the war between Russia and Ukraine continues to blight Eastern Europe.
Lithuania's defense spending in 2024 amounted to 2.77 percent of GDP, with targets set on 3 percent, according to official reports. This is above the NATO guideline of 2 percent.
In August, Lithuania embarked on one of the largest military projects in the country's history: the construction of a $1 billion military base in Rūdninkai, near the Belarusian border, to host up to 4,000 German troops by 2027. The base will feature facilities for troops, tanks, equipment storage, and shooting ranges.
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