Rheinmetall held a groundbreaking ceremony for a new 155 mm artillery ammunition production plant in Baisogala, Lithuania, on 4 November 2025.
The ceremony was attended by Lithuanian President Gitanas Nausėda and Lithuanian Prime Minister Inga Ruginienė, as well as numerous high-ranking Lithuanian officials from government, industry, diplomatic circles and the armed forces. In addition, German State Secretary in the Federal Ministry of Defence Dr Nils Schmid attended the ceremony, underscoring the close partnership between Lithuania and Germany in the field of security and defence policy.
The new Ammunition Plant Lithuania in Baisogala will be operated by the joint venture Rheinmetall Defense Lithuania. Covering an area of around 340 hectares, the plant will include a shell casing forge and a filling plant. Production capacity is expected to be in the tens of thousands of projectiles per year. Up to EUR 300 million will be invested directly in Lithuania to create the plant, with up to 150 jobs created, according to Rheinmetall.
The Lithuanian plant is scheduled to go into operation as early as 2026. Line qualification is expected to take place by the end of that year, after which a gradual ramp-up is expected to begin in 2027.
Domestic industry and local suppliers will also be involved in the construction and operation of the Lithuania plant.
During the groundbreaking ceremony Rheinmetall and the Lithuanian Ministry of Economy and Innovation signed a memorandum of understanding to establish a centre of excellence for propellants, which will also be operated by Rheinmetall Defence Lietuva. Rheinmetall intends to establish production facilities for the manufacture of energetic components and combustible cartridge cases, as well as an assembly line for the production of modular propellant charges with a production capacity of several hundred thousand propellant charge modules per year at this centre of excellence.
President Nausėda stated at the groundbreaking ceremony, “For Lithuania, this state-of-the-art artillery ammunition production facility, the largest defence investment in the 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 [the shift in German foreign and security policy announced by Chancellor Olaf Scholz in February 2022] proclaimed in Berlin materialises on the Lithuanian soil in steel, technology and, most importantly, in trust.”
“The future plant is a key element in strengthening the defensive capabilities and security of Lithuania and the wider region,” added Prime Minister Ruginienė. “It will help meet our own and our allies’ needs, fostering closer co-operation 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.”
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.”
With the construction of the Lithuanian plant, Rheinmetall is continuing a commitment to invest in the Baltic states. The Lithuania Defense Services joint venture in Jonava maintains combat vehicles for the German 45th Tank Brigade, other NATO armies and Ukraine, for example, while another artillery plant is to be built in neighbouring Latvia in the near future.
