Defense industry Rheinmetall plans to build ammunition factory in Lithuania by 2026

Rheinmetall has taken the next step in the construction of a new plant for the production of 155-millimeter artillery shells in Lithuania. This is because the Baltic state needs more ammunition for its own troops and to support Ukraine.

Rheinmetall has signed a lease agreement with the Lithuanian government for a plot of land in the small town of Baisogala and a contract for the purchase of 155 mm ammunition, according to the state chancellery in Vilnius. The ammunition factory is scheduled to go into operation in mid-2026 and will produce tens of thousands of rounds per year once completed.

According to the information, Rheinmetall plans to invest around 180 million euros in the construction and create around 150 jobs. In the spring, the company confirmed plans to build an artillery production plant in Lithuania and signed a letter of intent with the government in Vilnius. Shortly afterwards, the Lithuanian parliament passed several legislative amendments to facilitate and accelerate investments by arms companies, for example.

Rheinmetall is already active in Lithuania and has been operating a maintenance center with the armaments company KNDS since summer 2022. The combat vehicles of the NATO combat units stationed in the Baltic states and the Leopard 2 main battle tanks handed over to Ukraine by Germany are maintained there. In future, a Bundeswehr armored brigade will also be permanently stationed in Lithuania.

SDA