CONTACT US Menu
  • Follow us!
  • LinkedIn icon
  • Twitter icon
  • Facebook icon
  • Youtube icon

The Defence Industry of Lithuania:

Advancing Innovation and Global Security
© sgt. K. Kavolėlis / Ministry of National Defence of Lithuania
Explore: The Defence Industry of Lithuania Explore: The Defence Industry of Lithuania
  • Why Lithuania
  • Downloads
  • News & Events
  • FAQ
  • Contact us
Explore: The Defence Industry of Lithuania Explore: The Defence Industry of Lithuania
  • Why Lithuania
  • Downloads
  • News & Events
  • FAQ
  • Contact us

With a highly skilled workforce at hand and a supportive governmental framework in place, the defence industry in Lithuania enjoys strong upwards momentum. Robust state investment in defence is complemented by a fast-growing defence ecosystem that leverages Lithuania’s defence industry strengths in telecommunications, lasers, sensors and other high-tech fields to produce cutting-edge military technologies and equipment.

Strategic Advantages of Investing in Lithuania’s Defence Sector

Geopolitical Position and Strong International Alliances illustration

Geopolitical Position and Strong International Alliances

Strategically positioned within the European Union and on NATO’s eastern flank, Lithuania provides secure access to crucial European markets and serves as a stable gateway for defence operations and military investments across the continent. The country’s close ties with Ukraine ensure that real-time feedback can be used to create battle-proven products.

Advanced Manufacturing and Technological Capabilities in Lithuania illustration

Advanced Manufacturing and Technological Capabilities in Lithuania

Lithuania is a hub for defence and military innovations, excelling in areas such as drone production, secure telecommunications, and advanced sensor technologies related to defence systems and military equipment. Our partnerships with global defence leaders like Rheinmetall and the success of local pioneers in unmanned systems and electronic warfare both underscore our capabilities and commitment to cutting-edge technology.

  • Surveillance drone
    drones
  • secure radio telecommunications
    secure radio-telecommunications
  • electronic warfare products
    electronic warfare products
  • dual purpose electronics
    dual-purpose electronics

Cyber Defence and Cybersecurity Expertise

In September 2023, Lithuania, Estonia, and Luxembourg launched an IT coalition to support Ukraine’s Defence Ministry and Armed Forces in IT, communications, and cybersecurity.

Lithuania coordinates the European Cyber Rapid Response Teams (CRRTs), a project that pools expertise from EU Member States to mitigate cyber threats. The CRRTs provide support with training, vulnerability assessments, and other critical cybersecurity measures, enhancing the EU’s ability to respond to and prevent cyber attacks.

The Regional Cyber Defence Centre (RCDC), led by the Lithuanian Ministry of National Defence, aims to be a regional hub for practical cooperation in cyber defence. It focuses on cyber threat analysis, information exchange, and the protection of critical infrastructure, playing a crucial role in strengthening cybersecurity measures across the region.

Lithuania’s dynamic cybersecurity community includes initiatives like Cyber City, which serves as a hub for cybersecurity innovation, and Women4Cyber, which promotes gender diversity in the field. These efforts contribute to a vibrant and inclusive cybersecurity landscape in the country. The ScaleWolf Venture Capital Fund, with €13.5 million in funding, accelerates advancements in cybersecurity and defence technologies in Lithuania.

The growing local game development industry, with companies like Wargaming and Unity employing hundreds of professionals, creates unique opportunities for defence-related technologies. This concentration of talent and infrastructure makes Lithuania an attractive location for developing virtual training systems for defence applications.

Global initiatives

In September 2023, Lithuania, Estonia, and Luxembourg launched an IT coalition to support Ukraine’s Defence Ministry and Armed Forces in IT, communications, and cybersecurity.

Lithuania coordinates the European Cyber Rapid Response Teams (CRRTs), a project that pools expertise from EU Member States to mitigate cyber threats. The CRRTs provide support with training, vulnerability assessments, and other critical cybersecurity measures, enhancing the EU’s ability to respond to and prevent cyber attacks.

Local initiatives

The Regional Cyber Defence Centre (RCDC), led by the Lithuanian Ministry of National Defence, aims to be a regional hub for practical cooperation in cyber defence. It focuses on cyber threat analysis, information exchange, and the protection of critical infrastructure, playing a crucial role in strengthening cybersecurity measures across the region.

Lithuania’s dynamic cybersecurity community includes initiatives like Cyber City, which serves as a hub for cybersecurity innovation, and Women4Cyber, which promotes gender diversity in the field. These efforts contribute to a vibrant and inclusive cybersecurity landscape in the country. The ScaleWolf Venture Capital Fund, with €13.5 million in funding, accelerates advancements in cybersecurity and defence technologies in Lithuania.

The growing local game development industry, with companies like Wargaming and Unity employing hundreds of professionals, creates unique opportunities for defence-related technologies. This concentration of talent and infrastructure makes Lithuania an attractive location for developing virtual training systems for defence applications.

  • Cybersecurity rating Vilnius g2
    #1
    Vilnius is the best city in the EU for cybersecurity
    Source: StartupBlink, 2024
  • Digital skill availability g
    1st globally
    for the availability of digital skills
    Source: IMD World Competitiveness Yearbook, 2023
  • ICT specialists g
    70,500
    employees in the ICT sector in Lithuania
    Source: Eurostat, 2023
  • People in gamedev g
    2,700+
    people directly involved in game development activities in Lithuania
    Source: Lithuanian Association of Game Developers, 2023
  • AI tech g
    4th in the EU
    for enterprises using at least 2 AI technologies
    Source: Digital Economy and Society Index, 2021
  • Cybersecurity Index g
    6th
    in the ITU Global Cybersecurity Index
    Source: International Telecommunication Union, 2020
Unparalleled Governmental Support and Financial Incentives in Lithuania illustration

Unparalleled Governmental Support and Financial Incentives in Lithuania

The Lithuanian government facilitates swift business operations with fast-tracked export licences and global licensing options, ensuring you can move quickly from planning to execution.

  • EU support copy

    6 months
    to prepare the land plot for constructing defense manufacturing plants

  • Export licence

    25 work days or less
    to obtain an export licence

  • Cashback incentives

    InvestLT+ scheme
    offering lucrative cashback incentives

Green corridor incentive

Unlock the benefits of Lithuania’s Green Corridor for defence investments

The Green Corridor initiative fast-tracks large-scale investment projects with 0% corporate tax for 20 years, streamlined planning, and faster decision-making from public authorities, ensuring smoother setup and long-term success.

Explore the benefits
Lithuania’s Highly Skilled Workforce Ready for Tomorrow’s Challenges illustration

Lithuania’s Highly Skilled Workforce Ready for Tomorrow’s Challenges

Lithuania boasts one of the highest rates of STEM graduates in Europe and a top global ranking for digital skills. Our educational system is finely tuned to meet the demands of the defence industry, ensuring that our workforce is ready to tackle tomorrow’s technological challenges.

  • Graduates
    5th in the EU
    for science, math, computing, engineering, manufacturing and construction bachelor graduates in young adult population
    Source: Eurostat, 2022
  • Digital skill availability
    1st globally
    for the availability of digital skills
    Source: IMD World Competitiveness Yearbook, 2023
  • STEM students
    1 in 4 students
    enrolled in tertiary education is choosing STEM
    Source: Eurostat, 2021

Lithuania's Defence Capabilities

Comprehensive Defence Strategy illustration

Comprehensive Defence Strategy

Our strategic focus encompasses Land Maneuver, Indirect Fire Support, Land Centric ISTAR (Intelligence, Surveillance, Target Acquisition, and Reconnaissance), and Ground-based Air Defence. We are committed to a multidimensional approach to modern warfare readiness, ensuring robust defence capabilities.

Military R&D and Ecosystem Growth illustration

Military R&D and Ecosystem Growth

Lithuania is stepping up state support for defence innovation. With nearly €200 million earmarked for drone procurement over the next six years, the country is focused on developing military capabilities in the latest and most relevant defence technologies. In concert with future-focused defence investments, the local military technology ecosystem is experiencing rapid growth.

  • Defence industry specialists
    14%
    the average annual growth of the number of specialists employed in Lithuania’s defence industry between 2018 and 2023
  • Defence industry companies
    46%
    the growth of the turnover of Lithuanian defence companies between 2018 and 2022
Join Lithuania’s Thriving Defence Industry illustration

Join Lithuania’s Thriving Defence Industry

Lithuania’s defence sector reflects our historical commitment to freedom and security and is an open invitation to businesses seeking to innovate and expand. Our strategic location, coupled with a highly skilled workforce and a supportive governmental framework, makes Lithuania an optimal choice for advancing your defence operations.

Want to learn more about opportunities in the defence sector?

Lithuania has a lot to offer, and we’re here to help you discover it. At Invest Lithuania, our team is here to make your business journey smoother. From connecting you with the right people to accessing valuable resources, we take care of the details so you can drive your business forward.

Contact us

Related materials
to download

Defence industry in Lithuania factsheet cover
Defence, Manufacturing
Defence industry in Lithuania
Sep 05, 2025
Download
Investment Highway Lithuania cover
Incentives
Lithuania’s Investment Highway
Sep 24, 2025
Download
Incentives for large scale investors cover
Incentives
Incentives for large-scale investors
Sep 05, 2024
Download

What’s happening
in the sector

Defence industry Lithuania
Manufacturing
What do we need to create a strong defence industry in Lithuania?
May 07, 2025
Read more
Defence industry Lithuania
Defence industry Lithuania 2
Manufacturing
“Vytis” Initiative: €300 Million to Boost Lithuania’s Defense Industry
May 07, 2025
Read more
Defence industry Lithuania 2
Hawe biuras
Manufacturing
Hydraulics manufacturer HAWE Hydraulik strengthens international presence with production plant in Klaipėda FEZ
May 05, 2025
Read more
Hawe biuras
More news
FAQ
  • Why is Lithuania a strategic location for Defence industry investment in Europe?

    Lithuania offers regulatory advantages that enable Defence projects to progress up to 10 times faster than in other European countries. Through the Investment Highway initiative, strategic defence projects receive Project of State Importance status, allowing construction to begin without preliminary permits or final environmental assessments.

    The country’s strategic proximity to Ukraine and ability to provide export licenses within 7 working days supports critical defence supply chains. State-owned greenfield sites and brownfield options are readily available for immediate development. State-backed VC funds like Coinvest Capital and Scale-Wolf actively invest in and nurture Defence startups with innovative solutions.

  • What military technologies and capabilities are Lithuania known for?

    Lithuania specializes in cutting-edge defence technologies rather than traditional heavy industry. The country’s strongest innovation clusters focus on drones, photonics, lasers, telecommunications, and advanced software solutions including machine learning, AI, and object recognition and tracking systems.

    Among notable Lithuanian defence startups are Granta Autonomy, an autonomous UAV system developer whose clients include Lithuanian and Ukrainian armed forces; Brolis, which develops laser-based military solutions for NATO members such as Belgium and Spain; and NT Service, whose anti-drone systems and cellular jamming technologies are used by Lithuanian, Ukrainian, and Romanian armed forces.

  • What incentives and government support are available for defence companies in Lithuania?

    Lithuania provides comprehensive support through multiple channels. The Green Corridor initiative offers 0% corporate income tax for 20 years, streamlined permitting, and accelerated decision-making. The Investment Highway fast-tracks large projects from planning to groundbreaking in just 9 months. Free Economic Zones provide additional benefits including dividend and real estate tax exemptions.

    The ILTE National Development Bank offers dedicated defence funding with loans covering up to 80% of project value. The €300 million Vytis initiative includes the MilTech sandbox, defence innovation vouchers, and specialised financial instruments. Companies establishing in regional areas can earn an additional 10% on top of existing Invest LT+ cashback incentives.

  • How is Lithuania fostering dual-use and defence technology innovation?

    Lithuania actively nurtures dual-use and defence technologies through targeted funding and incentives. Coinvest Capital and Scale-Wolf invest in and accelerate defence startups. The ILTE National Development Bank has a dedicated fund for dual-use technologies, which provides loans up to 80% of project value. Manufacturing projects featuring dual-use technologies can access an additional 15% cashback when establishing in regional locations.

  • How does Lithuania support cybersecurity innovations?

    Lithuania has made a name for itself as a major cybersecurity hub in Europe. Vilnius was recognized as the EU’s top cybersecurity city by StartupBlink, while Lithuania is currently ranked 6th in the ITU Global Cybersecurity Index. The country is home to globally recognized cybersecurity companies like NordVPN and Surfshark –  this shows Lithuania’s strength in developing and continuously innovating cybersecurity solutions. This ecosystem is supported by a tech-savvy talent pool, reliable infrastructure, and strategic initiatives such as ScaleWolf, a VC fund and technology accelerator program fostering innovations in cybersecurity and defence.