Speaking to reporters after the meeting, Papperger said Lithuania presents opportunities for further investment in defence production. “As the prime minister said, we have to create an ecosystem, something economically powerful that also provides defence capabilities here in Lithuania,” he stated.
Paluckas confirmed that discussions included possible future investments aimed at strengthening Lithuania’s defence industry. “Looking ahead, we expect constructive cooperation that will bring benefits to both countries,” he said. “This cooperation is not an expense but a long-term investment.
The artillery ammunition plant in Radviliškis is expected to cost between €260 million and €300 million, with construction set to begin this year. The project is scheduled for completion by the end of 2026.
The facility will produce 155 mm artillery ammunition, with approximately half of the production designated for Lithuania and the remainder for export. The project is seen as a step towards enhancing Lithuania’s defence capabilities and reducing reliance on international supply chains.
The plant is being developed under a joint venture established in December between Rheinmetall and two Lithuanian state-owned companies. Under the agreement, Rheinmetall holds a 51% stake, while Epso-G Invest owns 48% and Giraitė Armament Plant (GGG) holds 1%.
As part of the project, a Memorandum of Understanding was signed between Rheinmetall, Epso-G Invest, and GGG in Vilnius. The agreement outlines commitments to using renewable energy, energy storage systems, and, if needed, biogas at the facility.
The Lithuanian government has identified the project as a priority for national security and defence. The collaboration is part of broader efforts to develop the country’s defence industry and strengthen ties with Germany, one of its key security partners.
While the focus is currently on the ammunition plant, both sides have indicated that future investments in defence production may be considered. “We see many opportunities to work together in this area,” Papperger said.
