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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
  • Reports & Publications
  • News & Events
  • Contact your advisor
Explore: The Defence Industry of Lithuania Explore: The Defence Industry of Lithuania
  • Why Lithuania
  • Reports & Publications
  • News & Events
  • Contact your advisor

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. 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.

  • 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
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.

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Akvilė Mačiulė
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    Akvilė Mačiulė Head of Manufacturing Team
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