Lithuania has streamlined regulations for foreign defense companies to establish local production, attracting major Western manufacturers. New legislation grants large-scale defense projects “pressing national security needs” status, allowing regulatory exemptions. Germany’s Rheinmetall is building a 155mm artillery ammunition plant in Baisogala, set to begin operations in 2026, while Northrop Grumman will produce 30mm medium-caliber ammunition in Vilnius alongside Lithuania’s purchase of Boxer-Vilkas combat vehicles. Additional interest includes a Ukrainian firm planning an explosives plant, signaling Lithuania’s rise as a regional defense manufacturing hub. Collaboration between Lithuanian and Ukrainian authorities on drones, naval systems, and electronic warfare highlights a strategic effort to bolster regional security and support Ukraine.
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