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Lithuanian defence startups
Investment climate
Investment climate

Lithuania’s defence startups: investment opportunities turning into future-focused miltech solutions

May 16, 2025

The defence industry of Lithuania has shown significant growth in recent years, developing a diverse ecosystem of innovative companies. With steady employment growth of 14% annually between 2018 and 2023 – twice the national average – Lithuania’s military sector is steadily developing its capabilities in high-tech fields including telecommunications, lasers, and advanced sensor technologies. The increasing flow of defence investment into the country has further accelerated this development, attracting both startups and established global players to Lithuania’s technology-focused ecosystem.

Global defence giants invest in Lithuania

Lithuania’s defence industry reached a significant milestone with German defence giant Rheinmetall’s decision to build an artillery ammunition plant in the country. Expected to be operational by Q1 2027, this facility will be the only 155mm ammunition plant in the Baltics,  producing tens of thousands of rounds annually.
Additionally, Lithuania has strengthened its defence cooperation through a recent partnership with Northrop Grumman. In September 2024, the US manufacturer signed a Memorandum of Understanding to support local suppliers in producing medium-caliber ammunition for Infantry Fighting Vehicles, with production expected to begin within 18 months.

Local success stories driving defence innovation

The defence startup ecosystem in Lithuania features several companies leveraging the country’s strengths in telecommunications, lasers, and sensor technologies:

  • Granta Autonomy started as a software development company in 2009 before expanding into military applications after 2014. Their Hornet XR autonomous unmanned aerial vehicle systems have gained recognition, and in September 2024, they secured a €1 million contract to supply GA-10FPV-AI quadcopter drones to both Lithuanian and Ukrainian armed forces.
  • RSI Europe specializes in remote-controlled systems for the defence sector, including the RISE-1 remote explosives initiation system and the Shpak FPV quadcopter. Their drones feature fiber-optic guidance systems and can resist electronic warfare defenses, with the first batch delivered to Ukraine in October 2024.
  • NT Service develops anti-drone systems and cellular jamming technologies. Their portable EDM4S SkyWipers have been battle-proven in Ukraine and are currently used by Lithuanian, Ukrainian, and Romanian armed forces.
  • Astrolight creates space-to-ground optical communication solutions, offering high-throughput, secure data link services. Recently selected as one of NATO’s Defence Innovation Accelerator DIANA’s top innovators, they received investment of up to €300,000 for their laser communication technology.
  • Brolis Semiconductors has leveraged its expertise in laser manufacturing to develop cutting-edge military technology solutions. Their products range from dismounted soldier systems to border surveillance solutions and are used by NATO countries including Belgium and Spain.
  • ​​Aktyvus Photonics, ranked among top 10 European defence startups by Sifted, specializes in robust laser technology designed for extreme conditions. The company develops high-performance lasers that can withstand harsh environments including extreme temperatures, shock, and humidity for various defence applications.
  • Unmanned Defense Systems researches, develops, and manufactures tactical military UAV systems with a focus on advanced swarm technology solutions. In 2024, the company secured €3.2 million in funding to advance AI-based swarm drones and supplies its ISTAR and long-range loitering munition platforms to Lithuanian and Ukrainian armed forces, as well as other EU members and NATO allies.

Battlefield testing and global reach

Lithuanian-made defence solutions have been battle-tested in Ukraine, providing an invaluable advantage for defence innovation companies. Close collaboration between the two countries ensures real-time feedback reaches Lithuanian manufacturers, helping them develop more effective battlefield solutions.
Lithuanian defence companies have expanded their reach well beyond Ukraine. NT Service’s SkyWipers anti-drone systems are now used by the Romanian Armed Forces, while Brolis Semiconductors supplies laser aiming devices to more than 20 countries worldwide, used by the Spanish Land Army, the Belgian Army, and the French GIGN special forces, among others.

For investors exploring opportunities in the military industry, this combination of battlefield-proven technologies and growing NATO integration demonstrates the sector’s increasing international competitiveness and makes a compelling case for investing in Lithuania’s defence sector.

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