The Defence Industry of Lithuania:
- Why Lithuania
- Reports & Publications
- News & Events
- Why Lithuania
- Reports & Publications
- News & Events
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
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
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.
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drones -
secure radio-telecommunications -
electronic warfare products -
dual-purpose electronics
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. The attractive fiscal policies under the Large Scale Project initiative for defence investments include significant tax incentives, offering a 0% corporate tax rate for the first 20 years, alongside streamlined processes for land acquisition and territorial planning.
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6 monthsto prepare the land plot for constructing defense manufacturing plants -
25 work days or lessto obtain an export licence -
InvestLT+ schemeoffering lucrative cashback incentives
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.
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5th in the EUfor science, math, computing, engineering, manufacturing and construction bachelor graduates in young adult populationSource: Eurostat, 2022 -
1st globallyfor the availability of digital skillsSource: IMD World Competitiveness Yearbook, 2023 -
1 in 4 studentsenrolled in tertiary education is choosing STEMSource: Eurostat, 2021
Lithuania's Defence Capabilities
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
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.
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14%the average annual growth of the number of specialists employed in Lithuania’s defence industry between 2018 and 2023 -
46%the growth of the turnover of Lithuanian defence companies between 2018 and 2022
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.
Related materials
to download
What’s happening
in the sector
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ManufacturingUS Window Maker INTUS to Build Additional Plant in ŠiauliaiJul 09, 2024 -
New investmentsDefence industry giant Rheinmetall signs agreement to establish operations in LithuaniaJun 03, 2024 -
ManufacturingRyanair expands in Kaunas: €20M investment, 200 new jobs and 4 new routesMay 14, 2024
