German arms maker Rheinmetall is investing €300 million in Lithuania, with projectile production set to begin within months. The move is another step in Germany's push to deepen cooperation with NATO allies.

Vilnius

German defense firm Rheinmetall has started building a large ammunition plant in Baisugala, central Lithuania, which will produce tens of thousands of 155mm artillery shells. The facility, spanning 340 hectares and representing a €300 million investment, is expected to begin production within months and create 115 new jobs in the region.

The project is part of a broader strategy to reinforce NATO's eastern flank and deepen Germany's military presence in the Baltics, especially after Russia's invasion of Ukraine. Alongside the new factory, Germany recently opened a logistics center in Rukla and plans to deploy a full brigade in the Baltic states, further strengthening defense cooperation between the two EU and NATO members.

German defense giant to build ammunition plant in Lithuania

It's a groundbreaking moment, quite literally. In Baisugala, central Lithuania, construction has begun on a factory that will produce tens of thousands of 155mm artillery shells. The goal? To bolster defence capabilities across Lithuania, the Baltics and Europe. The German defence giant Rheinmetall is behind the project. The facility will span 340 hectares, with production expected to begin in just a few months. I think it's a very important project, especially on the eastern flank, because of the logistics. If you see, for example, that we all produce our ammunition in Germany or in the western part of Europe, the logistics is a big problem usually. Rheinmetall is going to invest 300 million euros directly here in Lithuania and create 115 new jobs here in the region. It's a significant boost for the local economy and a strategic step in Germany's long-term commitment to its Baltic ally. This partnership between two EU and NATO members has taken on new urgency since Russia's invasion of Ukraine. For Lithuania, it's about deterrence, not just defence. This friendship and cooperation for us means a lot. And it means that we are not only one in whole Europe, we are working in a team. So it brings us a more secure feeling and we feel safe. Just weeks ago, another major step in Germany's military presence in the Baltics. Defence Minister Boris Pistorius officially opened the Bundeswehr's new logistics centre in Rukla, Lithuania. It's part of a broader strategy to strengthen NATO's eastern flank. Like the planned ammunition factory in Baisugala, the logistics hub in Rukla marks a long-term German commitment in the region. Over the next two years, the Bundeswehr will establish a full brigade in the Baltic states. 5,000 soldiers, supported by logistics units, military police, administrative staff, chaplains and even a German school. We don't want to be like an island here, just keeping to ourselves. We want to be part of the Lithuanian community. That's our goal. And that's why it's important to us to teach German children about Lithuanian traditions. Meanwhile Germany's defence industry is booming. Rheinmetall hopes its new ammunition factory will serve as another milestone in Europe's expanding defence ambitions. The war in Ukraine has triggered a surge in defence spending across Western nations. For Rheinmetall, this could mean billions in additional revenue in the coming years.

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