New Rheinmetall Ammunition Plant Breaks Ground in Lithuania, Second Project Under Discussion

Germany’s defence company Rheinmetall, together with Lithuanian partners, has begun construction of a major ammunition plant in northern Lithuania, while discussions are already underway for a second potential investment in the country.

Deividas Matulionis, chief national security adviser to President Gitanas Nausėda, told Žinių Radijas that negotiations for another Rheinmetall project are ongoing. “We are now talking not only about this investment but also about a possible second one that could come soon. There are other plans as well,” he said. Matulionis explained that Lithuania’s favourable investment conditions and the increase in European funding for the defence sector are creating new opportunities to attract international defence manufacturers.

According to him, talks are also being held with several US and Scandinavian defence industry companies regarding future projects. These, he noted, could move forward if there is sufficient political commitment and financial capacity on the government’s part to support them.

The groundbreaking ceremony for Rheinmetall’s first Lithuanian plant was held near the town of Baisogala in the Radviliškis District. The new facility will be built in the nearby village of Kėmerai, on a 340-hectare plot, and is expected to produce tens of thousands of 155 mm artillery shells annually. Matulionis described it as “one of the largest defence industry investments in Europe.”

The project, valued between 260 and 300 million euros, is a joint venture between Rheinmetall and two Lithuanian state-owned companies: Epso-G Invest, part of the energy group Epso-G, and Giraitės Ginkluotės Gamykla (Giraitė Armament Factory, or GGG). Construction is scheduled to be completed by the end of 2026.