Groundbreaking ceremony in Baisogala: Rheinmetall and Lithuania build artillery ammunition plant on NATO’s eastern flank

During a festive ceremony, Lithuanian President Gitanas Nausėda, Prime Minister Inga Ruginienė, Minister of Economy and Innovation Edvinas Grikšas, Minister of Energy Žygimantas Vaičiūnas, Rheinmetalls JV-partner EPSO-G Managing Director Mindaugas Keizeris and Rheinmetall CEO Armin Papperger broke ground on

4 November 2025. The ceremony was also attended by high-ranking officials, including Minister of Finance Kristupas Vaitiekūnas, Minister of Interior Vladislav Kondratovič, CEO of Giraitės Ginkluotės Gamykla (GGG) Mindaugas Kurauskas, and General Manager of Invest Lithuania Elijus Čivilis. Other high-ranking guests from politics, administration, industry, diplomacy and the armed forces also took part. In addition, the German State Secretary in the Federal Ministry of Defence, Dr Nils Schmid, attended the ceremony, underscoring the close partnership between Lithuania and the Federal Republic of Germany in the field of security and defence policy.

The Ammunition Plant Lithuania in Baisogala, operated by the joint venture Rheinmetall Defense Lithuania, will be a modern production facility for 155mm artillery ammunition covering an area of around 340 hectares. The Ammunition Plant Lithuania 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 €300 million will be invested directly in Lithuania. Up to 150 jobs will be created. The Lithuanian plant is scheduled to go into operation as early as 2026. Line qualification will initially take place until the end of 2026. Then, depending on the order situation, a gradual ramp-up will begin in 2027. Domestic industry and local suppliers will also be involved in the construction and operation of the Lithuania plant.

In the course of the groundbreaking ceremony, the Ministry of Economy and Innovation and Rheinmetall signed another MoU 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 cartridgecases, 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. 

Gitanas Nausėda, the President of the Republic of Lithuania: ‘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. 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.’

‘The future plant is a key element in strengthening the defensive capabilities and security of Lithuania and the wider region. 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,’ says the Prime Minister of Lithuania Inga Ruginienė.

Edvinas Grikšas, The Minister of Economy and Innovation: ‘Today’s Memorandum of Understanding marks a new milestone in Rheinmetall’s growing partnership with Lithuania. 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.’

‘The new plant in Lithuania will be of strategic importance not only for Lithuania itself, but also for Europe and NATO,’ said Armin Papperger. "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 its commitment 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. Another artillery plant is to be built in neighbouring Latvia in the near future.