Northrop Grumman has signed a Memorandum of Understanding (MoU) with Lithuania’s Ministry of Defence and Ministry of Finance to expand the co-production of medium-caliber ammunition, in partnership with Nammo Defense Systems.

The agreement, signed during the NATO Summit Defence Industry Forum, outlines plans to strengthen local manufacturing capabilities in Lithuania. The project aims to bolster national and regional ammunition supply chains, with deliveries intended to support both Lithuanian forces and NATO partners.

The collaboration will include Lithuania’s Giraitė Armaments Plant, and is intended to improve production capacity, accelerate delivery timelines, and enhance supply resilience in response to evolving security needs. The initiative also aims to contribute to Lithuania’s goal of reinforcing its national defense capabilities by 2030.

While the MoU represents a step forward in Lithuania’s broader defense industrial ambitions, it also reflects a growing trend among NATO members to diversify and localize key defense production lines.

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The agreement involves Northrop Grumman, one of the major producers of tactical and training medium-caliber ammunition, and Nammo, a defense manufacturer jointly owned by Norway and Finland.

No financial terms or detailed production timelines were disclosed at the time of signing.