The MoU was signed by the officials of Lithuanian MND and Rheinmetall on 16 April. Credit: © Government of the Republic of Lithuania/Laima Penek.

The Lithuanian Government has signed a memorandum of understanding (MoU) with German company Rheinmetall for the construction of a 155mm ammunition factory in Lithuania.  

The agreement was signed on 16 April 2024, by Lithuanian Defence Minister Laurynas Kasčiūnas, Lithuanian Economy and Innovations Minister Aušrinė Armonaitė, and Rheinmetall strategic programme management coordinator Maximilian Froch. 

Armonaitė highlighted that this factory will be one of the largest investments made by Lithuania in the Baltic region. 

According to the Lithuanian Ministry of National Defence (MND), the latest signing outlines the commitments and intentions of both parties to expedite the construction process and establish the necessary preconditions for the 155mm ammunition plant project. 

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This MoU further paves the way for detailed investment negotiations to follow, with the aim of commencing construction at the earliest opportunity. 

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The move also signifies the Lithuanian MND’s efforts towards reducing reliance on extended supply chains and ensuring a long-term supply of ammunition.  

In addition, this development reflects the Baltic state’s readiness to bolster regional security as well as illustrating its deepening partnership with Germany.  

Lithuanian Defence Minister Kasčiūnas said: “Arrival of the German defence industry company Rheinmetall in Lithuania will reduce our dependency on the long supply chains which currently present a significant challenge in the European Union and worldwide in providing for the military.  

“It will ensure provision for the long-term and will serve as a mutual commitment to build ammunition stocks and render assistance to Ukraine.   

“Development of such infrastructure in Lithuania will not only create additional jobs but will also bring expertise and defence technology of our partners, which is significant break-through regarding the ambition to further develop the defence industry and effectively respond to security challenges.” 

Earlier in 2024, Rheinmetall confirmed its intention to expand its manufacturing footprint by opening a new ammunition facility in Ukraine.  

In collaboration with a Ukrainian partner, Rheinmetall finalised an MoU to establish a joint venture that will produce a significant quantity of 155mm calibre ammunition annually, including the required propelling charges. 

The planned “Ukrainian Competence Center for Ammunition” will be a joint operation, with Rheinmetall holding a 51% stake and the Ukrainian partner owning the remaining 49%.