Rheinmetall has begun building a new artillery ammunition plant in Lithuania’s Baisogala to boost NATO’s defense production on the alliance’s eastern flank.
The facility will produce tens of thousands of 155mm artillery shells annually once operational in 2026.
Jointly operated with Lithuania’s state-owned energy company EPSO-G under the venture Rheinmetall Defence Lietuva, the plant represents an investment of up to 300 million euros ($346 million) and is expected to create around 150 jobs.
At the groundbreaking ceremony, Lithuanian President Gitanas Nausėda described the project as a strategic step in bolstering national deterrence and NATO’s eastern defenses.
A second agreement signed during the event will establish a Centre of Excellence for propellant charges, also under Rheinmetall Defence Lietuva. The center will manufacture energetic components and modular propellant charges, with an annual output projected in the hundreds of thousands.
Expanding Defense Manufacturing on NATO’s Eastern Flank
The new Lithuanian facility is part of a wider surge in defense production across NATO’s eastern front, driven by growing demand for artillery and ammunition since Russia’s full-scale invasion of Ukraine.
Rheinmetall has expanded its footprint across Central and Eastern Europe, including maintaining combat vehicles for the German 45th Tank Brigade in Jonava, Lithuania, and planning a new artillery production plant in neighboring Latvia.
Meanwhile, the Czech Republic and Slovakia have stepped up joint ammunition initiatives, and Estonia’s Milrem Robotics has partnered with Germany’s Krauss-Maffei Wegmann to produce robotic combat vehicles for NATO partners.
