The groundbreaking ceremony on 4 November 2025 brought together top Lithuanian leaders and German defence officials, including President Gitanas Nausėda, Prime Minister Inga Ruginienė and Rheinmetall CEO Armin Papperger. “For Lithuania, this state-of-the-art artillery ammunition production facility, the largest defense investment in country’s history, is not merely an industrial project,” said Nausėda. “It is a strategic step aimed at building deterrence as a precondition for peace. Today, we witness how the Zeitenwende proclaimed in Berlin materializes on the Lithuanian soil in steel, technology and, most importantly, in trust.”
Prime Minister Ruginienė highlighted the broader impact of the project. “The future plant is a key element in strengthening the defensive capabilities and security of Lithuania and the wider region,” she said. “It will help meet our own and our allies’ needs, fostering closer cooperation 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.”
Up to €300 million will be invested in the Baisogala site, creating up to 150 jobs, with production expected to start in 2026 and ramping up from 2027 based on demand. The facility will include a shell casing forge and a filling plant, and will also involve Lithuanian industry and local suppliers in its construction and operation.
During the event, Rheinmetall and the Lithuanian Ministry of Economy and Innovation also signed a memorandum of understanding to establish a Centre of Excellence for propellants. This centre, to be run by Rheinmetall Defence Lietuva, will manufacture energetic components and modular propellant charges, with output planned in the hundreds of thousands annually.
Minister of Economy and Innovation Edvinas Grikšas called the agreement “a new milestone in Rheinmetall’s growing partnership with Lithuania”. He added, “It is not only a new agreement, but also a clear sign of confidence that Lithuania offers a safe and reliable environment to invest, innovate and grow. We welcome Rheinmetall’s continued commitment, which helps build stronger industrial capacity and reinforces Lithuania’s strategic position in Europe.”
Rheinmetall CEO Armin Papperger underscored the wider geopolitical stakes. “The new plant in Lithuania will be of strategic importance not only for Lithuania itself, but also for Europe and NATO,” he said. “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!”
This development adds to Rheinmetall’s growing presence in the Baltic region, where it already operates a joint venture in Jonava supporting NATO and Ukrainian forces. The company also plans to establish another artillery ammunition facility in neighbouring Latvia.
