Rheinmetall and Lithuania have begun construction of a new 155 mm artillery ammunition production facility in Baisogala, marking a further step in defence cooperation on NATO’s eastern flank. The plant will be operated by Rheinmetall Defence Lietuva, UAB, a joint venture between Rheinmetall and Lithuanian energy group EPSO-G.
A groundbreaking ceremony was held on 4 November 2025 with the participation of Lithuanian President Gitanas Nausėda, Prime Minister Inga Ruginienė, senior government ministers, Rheinmetall CEO Armin Papperger and German State Secretary for Defence Dr Nils Schmid. Officials from Lithuania’s defence industry and representatives from NATO member states were also present.
The Ammunition Plant Lithuania will cover approximately 340 hectares and will include a shell casing forge and filling plant. According to Rheinmetall, production capacity is planned in the tens of thousands of 155 mm projectiles per year. The investment may total up to €300 million and create up to 150 jobs. Line qualification is expected to run until the end of 2026, with a gradual production ramp-up beginning in 2027 depending on demand. Local suppliers and industry actors are expected to be involved in both construction and operation.
During the ceremony, Lithuania’s Ministry of Economy and Innovation and Rheinmetall signed an additional memorandum of understanding for the establishment of a Centre of Excellence for propellants. Rheinmetall intends to produce energetic components, combustible cartridge cases and modular propellant charges at this facility, with projected output in the hundreds of thousands of propellant charge modules annually.
Speaking at the ceremony, President Gitanas Nausėda stated: “For Lithuania, this state-of-the-art artillery ammunition production facility, the largest defense investment in country’s history, is not merely an industrial project. It is a strategic step aimed at building deterrence as a precondition for peace. Today, we witness how the Zeitenwende proclaimed in Berlin materializes on the Lithuanian soil in steel, technology and, most importantly, in trust.”
Prime Minister Inga Ruginienė said: “The future plant is a key element in strengthening the defensive capabilities and security of Lithuania and the wider region. It will help meet our own and our allies' needs, fostering closer cooperation between Lithuania and Germany – two exemplary strategic partners. I am confident that the success of this project will encourage and pave the way for new partnerships, all aimed at enhancing security – the priority of our time.”
Minister of Economy and Innovation Edvinas Grikšas commented: “Today’s Memorandum of Understanding marks a new milestone in Rheinmetall’s growing partnership with Lithuania. It is not only a new agreement, but also a clear sign of confidence that Lithuania offers a safe and reliable environment to invest, innovate and grow.”
Rheinmetall CEO Armin Papperger stated: “The new plant in Lithuania will be of strategic importance not only for Lithuania itself, but also for Europe and NATO. The security of our country and our allies is a matter of urgent concern to us all. We are grateful for Lithuania's trust and support. I promise that we at Rheinmetall will do our part to ensure operational readiness here on NATO's eastern flank.”
The new site follows Rheinmetall’s ongoing activities in the Baltics, including maintenance support for NATO and Ukrainian forces at Lithuania Defense Services in Jonava. The company also plans to build another artillery production plant in Latvia.
