Memorandum of Understanding between Lithuania and German Rheinmetall for building an ammunition plant in Lithuania

On Tuesday, a Memorandum of Understanding for building an ammunition plant in Lithuania has been signed between the Lithuanian authorities and Germany’s defence industry giant Rheinmetall. The document, showing Lithuania’s commitment to strengthening its own and regional security, while forging a close partnership with Germany, has been signed by Minister for Economy and Innovation, Aušrinė Armonaitė, Minister for National Defence, Laurynas Kasčiūnas, and Maximillian Froch, Director of Strategic Program Organization International at Rheinmetall AG.

‘We must go beyond mere words about the threat of war and take tangible actions to enhance our nation’s security. We are already facilitating the development of large-scale investment projects to meet national security and defence needs. This will attract investors to manufacture weaponry locally, thereby reducing our dependence on arms procured from international markets. This is how we create a more secure Lithuania,’ said Aušrinė Armonaitė, Minister for Economy and Innovation.

The signed document delineates the mutual obligations and intentions regarding the start of construction activities for the 155 mm ammunition manufacturing facility in Lithuania, and the fulfilment of the prerequisites for its materialization.

‘Freedom must be armed better than tyranny - today these words from Ukrainian President Volodymyr Zelensky, spoken at the beginning of Russia’s large-scale war, resonate more powerfully than ever. And while we long for a swift victory for Ukraine, we understand perfectly well that Russia will remain the biggest threat to Europe for the foreseeable future. Thus, we must invest not only in proper military preparedness and societal resilience but also in the defence industry. The Rheinmetall ammunition factory is a practical example that we are already doing this. This plant holds significance for Lithuania, Ukraine, and our broader region, and the Government will do everything within its power to ensure that it becomes operational as soon as possible,’ said Prime Minister Ingrida Šimonytė.

The Prime Minister has thanked the negotiators from both sides who helped reach the agreement.

‘This step is very important for ensuring our national security and defence. The establishment of the Rheinmetall ammunition factory in Lithuania will reduce our reliance on lengthy supply chains, which currently pose significant challenges across the European Union and the world in meeting military demands. It will ensure sustained supply and signify mutual commitment to expanding ammunition reserves and extending support to Ukraine. The development of such infrastructure will not only create extra jobs but also facilitate the transfer of partner expertise and defence industry technology, marking a significant stride towards the continued advancement of the defence industry and the effective response to security challenges. This also represents another significant chapter in strengthening bilateral relations between Lithuania and Germany. As a steadfast ally, we stand poised to forge security guarantees collectively; we are not a mere recipient of such guarantees. Hence, it is a two-way traffic. I am confident that this will strengthen our cooperation, particularly in the context of the stationing of the German brigade in Lithuania,’ said Minister for National Defence, Laurynas Kasčiūnas.

'We at Rheinmetall would like to thank the Lithuanian government for their trust in us and their proactive approach to the project. As a defence industry partner, we are pleased to contribute to national sovereignty in the field of ammunition. The signing of this MoU lays the foundation for a long-term co-operation,' said Maximillian Froch, Director of Strategic Program Organization International at Rheinmetall AG.

Last updated: 17-04-2024

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