Rheinmetall starts work on a new Lithuanian artillery factory

Construction work has begun on a new ammunition plant in Lithuania led by German company Rheinmetall, which will eventually be making tens of thousands of 155mm calibre artillery shells per year.

The facility is the result of €180 million (US$190 million) investment and operations will begin from mid-2026.

Rheinmetall has been developing substantially greater ammunition and shell manufacturing capability since as far back as 2022 when it purchased Spain’s Expal Systems.

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It has also begun the production of artillery shells in Queensland, Australia and is establishing a vehicle joint venture in Ukraine.

Since Russia’s invasion of Ukraine, Rheinmetall has received orders for billions of dollars for 120mm and155mm artillery shells, 35mm munitions and 60mm, 81mm and 120mm calibre mortar rounds.

Prime Minister of Lithuania Ingrida Šimonytė said: “Our defence needs, the importance of the shortest possible supply chains, and strong allied partnership between Lithuania and Germany underscore the need to maintain the momentum.”

Lithuania’s Minister of the Economy and Innovation Aušrinė Armonaitė said the development was vitally important to the country’s national security in the light of ongoing wars and demands for ammunition.

“By fostering large-scale investment projects and enabling local production of weaponry, we not only address national security needs but also reduce our dependence on arms procured from international markets,” Armonaitė said.