Groundbreaking ceremony in Baisogala: Rheinmetall and Lithuania build artillery ammunition plant on NATO’s eastern flank

Rheinmetall is taking another step forward in its cooperation with Lithuania to support European and Atlantic security – right on NATO’s eastern flank. A new plant for the production of 155 mm artillery ammunition is being built in the Lithuanian municipality of Baisogala. It will be operated by the joint venture Rheinmetall Defence Lietuva.  

During a festive ceremony, Lithuanian President Gitanas Nausėda, Prime Minister Inga Ruginienė, Minister of Economy and Innovation Edvinas Grikšas, Minister of Energy Žygimantas Vaičiūnas, Rheinmetalls JV-partner EPSO-G Managing Director Mindaugas Keizeris and Rheinmetall CEO Armin Papperger broke ground on 4 November 2025. The ceremony was also attended by high-ranking officials, including Minister of Finance Kristupas Vaitiekūnas, Minister of Interior Vladislav Kondratovič, CEO of Giraitės Ginkluotės Gamykla (GGG) Mindaugas Kurauskas, and General Manager of Invest Lithuania Elijus Čivilis. Other high-ranking guests from politics, administration, industry, diplomacy and the armed forces also took part. In addition, the German State Secretary in the Federal Ministry of Defence, Dr Nils Schmid, attended the ceremony, underscoring the close partnership between Lithuania and the Federal Republic of Germany in the field of security and defence policy.  

The Ammunition Plant Lithuania in Baisogala, operated by the joint venture Rheinmetall Defence Lietuva, will be a modern production facility for 155 mm artillery ammunition covering an area of around 340 hectares. The Ammunition Plant Lithuania will include a shell casing forge and a filling plant. Production capacity is expected to be in the tens of thousands of projectiles per year. Up to €300 million will be invested directly in Lithuania. At least 150 jobs will be created. The Lithuanian plant is scheduled to go into operation as early as 2026. Line qualification will initially take place until the end of 2026. Then, depending on the order situation, a gradual ramp-up will begin in 2027. Domestic industry and local suppliers will also be involved in the construction and operation of the Lithuania plant.  

In the course of the groundbreaking ceremony, Ministry of the Economy and Innovation of the Republic of Lithuania and Rheinmetall signed another MoU to establish a Centre of Excellence for propellants, which will also be operated by Rheinmetall Defence Lietuva. Rheinmetall intends to establish production facilities for the manufacture of energetic components and combustible cartridge cases, as well as an assembly line for the production of modular propellant charges with a production capacity of several hundred thousand propellant charge modules per year at this centre of excellence.

With the construction of the Lithuanian plant, Rheinmetall is continuing its commitment in the Baltic States. The Lithuania Defence Services joint venture in Jonava maintains combat vehicles for the German 45th Tank Brigade, other NATO armies and Ukraine. Another artillery plant is to be built in neighbouring Latvia in the near future.