Rheinmetall and Lithuania have begun construction of a major new artillery ammunition plant in Baisogala, marking one of the most significant defence industrial investments in Lithuania’s history and a strategic boost to NATO’s eastern flank. The facility, operated by the joint venture Rheinmetall Defense Lithuania, will produce 155mm artillery ammunition and forms part of a broader expansion of Europe’s defence manufacturing capacity.
The groundbreaking ceremony on 4 November 2025 brought together Lithuania’s top leadership, including President Gitanas Nausėda, Prime Minister Inga Ruginienė, and key ministers. High-ranking officials, diplomats, defence representatives, and industry partners attended, alongside Rheinmetall CEO Armin Papperger and German State Secretary for Defence Dr. Nils Schmid—an indication of Germany’s deepening strategic cooperation with Lithuania.
Covering roughly 340 hectares, the Ammunition Plant Lithuania will include a shell-casing forge and filling facility, with an expected annual output in the tens of thousands of projectiles. The project represents up to €300 million in direct investment and will create as many as 150 jobs. Initial line qualification is planned through late 2026, with a gradual production ramp-up beginning in 2027 depending on demand. Lithuanian industry and local suppliers will play a key role throughout construction and operations.
During the ceremony, the Ministry of Economy and Innovation signed an additional MoU with Rheinmetall to establish a new Centre of Excellence for propellants. The centre—also to be operated by Rheinmetall Defense Lithuania—will house production of energetic components, combustible cartridge cases, and modular propellant charges, targeting output in the hundreds of thousands annually.
Lithuanian President Gitanas Nausėda described the project as a historic and strategic investment that strengthens deterrence and embodies the realisation of Germany’s Zeitenwende on Lithuanian soil. Prime Minister Inga Ruginienė highlighted the plant’s importance for regional defence and for deepening Lithuanian-German cooperation, expressing confidence that the project will pave the way for future partnerships. Minister of Economy and Innovation Edvinas Grikšas emphasised that the new MoU reflects trust in Lithuania as a stable environment for investment and innovation.
Rheinmetall CEO Armin Papperger underscored the broader security implications: the Lithuanian plant, he said, will serve not only national needs but also support European and NATO readiness. He reaffirmed the company’s commitment to strengthening capabilities along the Alliance’s eastern flank.
The new facility builds on Rheinmetall’s growing footprint in the Baltic region. Its joint venture in Jonava already supports the German Army’s 45th Tank Brigade, other NATO forces, and Ukraine. A similar artillery plant is planned for neighbouring Latvia, further expanding the region’s defence-industrial base.
