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