An ammunition factory built by German defense giant Rheinmetall in Lithuania is expected to start production in 2027.
Estonia, Latvia and Lithuania are all rapidly developing their domestic defense industries in the wake of Russia’s full-scale invasion of Ukraine in 2022.
The German-Lithuanian deal was announced last year and will see a 155-mm artillery ammunition factory built almost 200 km north of the capital, Vilnius.
“We are working very hard and very quickly. Everything is on schedule, and we expect to meet the deadlines for the end of 2026 and... start the operations at the beginning of 2027,” Rheinmetall Expal Munitions CEO José Manuel Fernández Bosch said on Thursday after meeting Lukas Savickas, the Lithuanian economy and innovation minister.
The minister added the project is on track and that the company does not see any “significant challenges” ahead.
In January, Rheinmetall CEO Armin Papperger said he also sees “opportunities” for further ammunition or defense production in the country in the future.
Rheinmetall sends large amounts of ammunition to Ukraine and last year it was reported that Russia had plotted to assassinate its CEO.
Germany and Lithuania have deepened their defense cooperation in recent years. The German defense forces lead the NATO deployment in Lithuania and construction of a permanent base for a brigade is underway. It will host about 5,000 troops and civilians.
Several other initiatives are underway across the Baltic states.
Additionally, a “miniature defense park” will be built in western Estonia close to the Ämari Air Base, which hosts NATO’s Air Policing mission for the production of ammunition and munitions.
Estonia’s startups are also investing in defense initiatives and the government launched a €100 million fund for the emerging sector last month.
In Latvia, plans are underway to open a new munitions factory for modular powder charges for artillery ammunition in 2026.
Minister of Defense Andris Sprūds told the LETA newswire last year it should produce 50,000 a year. The facility is expected to cost around €12 million and would be located 35 km south of the capital, Riga.
Beāte Krauze-Čebotare, head of Latvian company Vairog EU, which produces bullets and cartridges, said the importance of the domestic defense industry is growing.
“There may be other countries where you can buy this low-caliber ammunition cheaper, but at that moment, if there is an enemy at the door, it is important to produce it here in Latvia,” she told Latvian Radio this week.
