Lithuania Defense Services will be subcontracted by KNDS to implement the project, with part of the tanks to be assembled locally to shorten delivery timelines and support capability development in the Lithuanian defence industry. The agreement also includes training of skilled personnel, long-term logistical support, and an additional commitment by Lithuania to ensure maintenance of the tanks in combat-ready condition.
“This contract is a clear indication that we are able to quickly and easily adapt the production of our products to the challenges facing Europe at this time,” said Ralf Ketzel, CEO of KNDS Germany. “This project, in particular, perfectly embodies the spirit of close European cooperation in the field of land systems, as the contract for the Leopard 2A8 systems was concluded under the framework agreement established by the German Federal Government and the German Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support.”
“This agreement is a milestone in strengthening Lithuania’s defensive capabilities,” said Minister of National Defence Robertas Kaunas. “For the first time in history part of the cutting-edge equipment of NATO standard will be assembled in Lithuania, while the infrastructure developed in parallel will support its technical readiness in the long-term.”
According to the chairman of the LDS board of directors, Markus Schmidt, “in our estimation, the first tank assembled in Lithuania should be released in early 2028, while the remaining will be manufactured as agreed in the Memorandum – by the end of 2030.” The infrastructure will be built in the Kaunas Free Economic Zone, with LDS planning to invest around EUR 50 million and create approximately 100 jobs, while the project follows Lithuania’s decision to procure Leopard 2A8 tanks under the Cooperative Procurement Arrangement signed in December 2024, with deliveries scheduled between 2028 and 2030.
