Major Investment in Baltic Defense: Rheinmetall’s New Artillery Plant in Lithuania

Strategic Development in Baisogala

On November 4, 2025, Rheinmetall hosted a pivotal groundbreaking ceremony for a new production facility dedicated to 155 mm artillery ammunition in Baisogala, Lithuania. This development is notable not just for its scale but for its implications within the broader context of European defense initiatives.

Attending this significant event were prominent figures, including Lithuanian President Gitanas Nausėda and Prime Minister Inga Ruginienė, alongside key officials from Lithuania’s government, defense sectors, and international representatives such as German State Secretary Dr. Nils Schmid. Their presence reinforces the collaborative security relationship shared between Lithuania and Germany, which has grown increasingly important in light of recent geopolitical challenges.

Facility Details and Economic Impact

The newly established Lithuanian ammunition plant will be operated through a joint venture, Rheinmetall Defense Lithuania. Spanning approximately 340 hectares, this facility will feature state-of-the-art manufacturing capabilities, including a shell casing forge and a filling plant. The projected output is expected to reach tens of thousands of projectiles annually.

Key details:

• Investment: Up to €300 million earmarked for construction
• Employment: Anticipated creation of 150 jobs
• Operational Timeline: Expected to commence operations in 2026, with line qualification slated for completion by the end of the year.

Furthermore, local industry engagement is a cornerstone of this project, aiming to foster partnerships with domestic suppliers throughout the plant’s construction and operational phases.

Combat Readiness Through Innovation

A significant aspect of the ceremony was the memorandum of understanding signed between Rheinmetall and the Lithuanian Ministry of Economy and Innovation. This agreement will establish a Center of Excellence for propellant production, which will enable the manufacturing of energetic components and modular propellant charges. The center aims for a production capacity of several hundred thousand propellant charge modules each year, enhancing Lithuania’s capabilities in defense production.

President Nausėda aptly characterized the facility as “Lithuania’s largest defense investment,” emphasizing that it signifies more than industrial advancement; it is a strategic move to enhance deterrent capabilities—an essential prerequisite for national and regional peace.

Regional Security Enhancement

Prime Minister Ruginienė emphasized the role of this facility in bolstering both Lithuania’s and its allies’ defense needs, reinforcing the partnership between Lithuania and Germany as exemplars of strategic cooperation. The new plant is positioned as a vital component in amplifying defensive capabilities, underscoring the urgency of augmenting security frameworks amid evolving security threats.

Rheinmetall’s CEO, Armin Papperger, articulated the strategic importance of this facility not only for Lithuania but also for NATO and broader European security considerations. As global tensions rise, the emphasis on operational readiness along NATO’s eastern flank becomes increasingly critical.

Expanding Baltic Defense Collaboration

The establishment of this plant is part of Rheinmetall’s commitment to enhancing military capabilities across the Baltic region. Previously, the Lithuania Defense Services joint venture in Jonava has provided maintenance for combat vehicles serving various NATO forces, including the German 45th Tank Brigade and Ukrainian forces. Moreover, plans are underway for an additional artillery plant in neighboring Latvia, signaling a sustained investment in Baltic defense infrastructure.

The Baisogala facility is not just about producing ammunition; it represents a solidification of ties among NATO allies and an investment in future security. As threats continue to evolve, such advancements become essential in shaping a collaborative and resilient defense posture throughout Europe.