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Rheinmetall’s $345M Lithuania Megaplant: NATO’s New Arsenal on Russia’s Border
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![Photo of Cyril Barabaltchouk]( "Photo of Cyril Barabaltchouk")
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Rheinmetall AG has broken ground on a major ammunition plant in Baisogala, Lithuania, marking the largest defense investment in the country’s history and significantly boosting NATO’s production capacity on its eastern flank, Bloomberg reported on November 4.
The German defense giant plans to produce 155-millimeter artillery shells at the 340-hectare site, which is set to begin operations by mid-2026. Initially, the plant will produce 35,000 shells per year, with capacity increasing to 100,000 rounds by 2027.
This facility is part of Rheinmetall’s broader strategy to expand its production infrastructure across Europe. For Lithuania, a NATO member bordering Russia, the plant is seen as a vital part of the country’s defense strategy. Lithuanian President Gitanas Nauseda described the project as a crucial step in building deterrence and strengthening peace, according to Bloomberg.
The investment, totaling around $345 million, will create 400 jobs, with two shifts of approximately 200 employees each. The project also includes the construction of a propellant charge production facility.
The establishment of the plant follows the recent deployment of a German battle tank brigade in Lithuania, part of NATO’s effort to bolster defenses after Russia’s 2022 invasion of Ukraine. Lithuania is also increasing its defense spending, aiming to allocate more than 5% of its GDP to military needs by next year, Bloomberg reported.
Rheinmetall Defense Lietuva, a joint venture between Rheinmetall and Lithuania’s state-owned EPSO-G Invest and Giraites Ginkluotes Gamykla, is overseeing the project. This plant is part of a European expansion by Rheinmetall, which also operates plants in Spain, Hungary, Bulgaria, and Romania, with plans for a similar facility in Latvia.
The Baisogala plant is expected to become fully operational by 2027.
Previously, it was reported that Bulgaria had signed a major defense agreement with German arms manufacturer Rheinmetall to build a new ammunition production facility.
The deal, valued at over $1 billion, aims to boost the region’s defense capabilities amid Russia’s ongoing war in Ukraine.
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-2ce7897fcd2b6c42c030adf8599b981a.jpeg "Aftermath of a drone strike on Starobesheve thermal power plant, Novi Svit, Russian-occupied part of the Donetsk region, November 12, 2025. (Source: Exilenova_plus)")
