Rheinmetall to Establish Ammunition Factory in Lithuania

German defense contractor Rheinmetall will establish an ammunition factory in Lithuania, the country's Ministry of Economy and Innovation announced on June 3. The project aims to strengthen Lithuania's defense capabilities and ensure access to essential weapons and ammunition for European defense needs.

The agreement was signed by Lithuania's Minister of Economy and Innovation, Aušrinė Armonaitė, and the Minister of Defense, alongside representatives from Rheinmetall. The initiative has been granted the status of state importance, which is expected to expedite its implementation and provide access to investment incentives.

The new plant is projected to produce tens of thousands of rounds of ammunition annually, with an investment exceeding EUR 180 million. The factory is anticipated to create at least 150 new jobs. The specific location for the facility will be announced in the coming weeks.

Concurrently, the Lithuanian government has updated its legislation to facilitate large-scale investment projects, particularly within the defense industry. These regulatory changes simplify land planning, acquisition, and construction procedures, enabling faster operational setup for manufacturers.

Rheinmetall representatives expressed gratitude for the long-term partnership with Lithuania, highlighting the company's contribution to national and international security. The venture is also expected to bolster security cooperation between Germany and Lithuania.