On Tuesday, November 4, 2025, the German group Rheinmetall AG announced that construction has begun on the Lithuanian Ammunition Excellence Center, a German–Lithuanian joint venture operated by Rheinmetall Defence Lietuva, in the town of Baisogala, Šiauliai District, Radviliškis Region, approximately 31 kilometers north of Kėdainiai.
Photo: Rheinmetall AG
Construction began with a ceremonial groundbreaking attended by Lithuanian President Gitanas Nausėda, Prime Minister Inga Ruginienė, Minister of Economy and Innovation Edvinas Grikšas, Minister of Energy Žygimantas Vaičiūnas, Minister of Finance Kristupas Vaitiekūnas, Minister of the Interior Vladislav Kondratovič, Managing Director of the Lithuanian company Epso-G Invest (part of the Epso-G energy group) Mindaugas Keizeris, Rheinmetall AG CEO Armin Papperger, CEO of Giraitės ginkluotės gamykla (GGG) Mindaugas Kurauskas, and CEO of Invest Lithuania Elijus Čivilis (pictured).
The ceremony was also attended by senior officials and guests from Lithuanian politics, government administration, industry, diplomacy, and the armed forces. In addition, German State Secretary at the Federal Ministry of Defense Dr. Nils Schmid took part in the event, emphasizing the close security and defense partnership between Lithuania and the Federal Republic of Germany.
The construction of the facility results from a Letter of Intent (LoI) signed on April 16, 2024, followed by a Memorandum of Understanding (MoU) on June 3, 2024, which granted the project the status of a strategic investment in terms of national security, accelerating the steps required to launch construction. Subsequently, on January 7 of this year, the joint venture Rheinmetall Defence Lietuva was established, with the following share distribution: Rheinmetall AG – 51%, Epso-G Invest – 48%, and Giraitės ginkluotės gamykla – 1%.
The Lithuanian Ammunition Excellence Center in Bejsagoła, to be operated by Rheinmetall Defence Lietuva, will be a state-of-the-art manufacturing facility for 155 mm artillery ammunition, covering an area of approximately 340 hectares. It will produce artillery shells along with explosive filling and assembly. The plant will be capable of manufacturing tens of thousands of 155 mm artillery rounds annually.
The direct investment is estimated at 300 million EUR, creating up to 150 new jobs. The launch of production operations is scheduled for 2026, with qualification of the production lines to be completed by the end of that year. Depending on order volumes, gradual ramp-up is expected in 2027. The construction and operation of the Lithuanian facility will also involve domestic industry and local suppliers.
Importantly, during the cornerstone-laying ceremony, the Ministry of Economy and Innovation and Rheinmetall AG signed another Memorandum of Understanding (MoU) regarding the establishment of a Center of Excellence for propellant materials, which will also be operated by Rheinmetall Defence Lietuva. To this end, Rheinmetall plans to set up production facilities for components of propellant and combustible cartridge cases, as well as an assembly line for modular propellant charges, with an annual capacity of several hundred thousand units.
President of the Republic of Lithuania Gitanas Nausėda stated:
„For Lithuania, this state-of-the-art artillery ammunition production facility, the largest defense investment in country’s history, is not merely an industrial project. It is a strategic step aimed at building deterrence as a precondition for peace. Today, we witness how the Zeitenwende* proclaimed in Berlin materializes on the Lithuanian soil in steel, technology and, most importantly, in trust.”
*Zeitenwende (Ger. “turning point” or “epochal change”) is a term that gained particular significance in German political discourse following then-Chancellor Olaf Scholz’s speech in the Bundestag on February 27, 2022, in the context of Russia’s attack on Ukraine.
„The future plant is a key element in strengthening the defensive capabilities and security of Lithuania and the wider region. It will help meet our own and our allies’ needs, fostering closer cooperation between Lithuania and Germany – two exemplary strategic partners. I am confident that the success of this project will encourage and pave the way for new partnerships, all aimed at enhancing security – the priority of our time,” says the Prime Minister of Lithuania Inga Ruginienė.
Edvinas Grikšas, The Minister of Economy and Innovation:
„Today’s Memorandum of Understanding marks a new milestone in Rheinmetall’s growing partnership with Lithuania. It is not only a new agreement, but also a clear sign of confidence that Lithuania offers a safe and reliable environment to invest, innovate and grow. We welcome Rheinmetall’s continued commitment, which helps build stronger industrial capacity and reinforces Lithuania’s strategic position in Europe.”
„The new plant in Lithuania will be of strategic importance not only for Lithuania itself, but also for Europe and NATO,” said Armin Papperger. „The security of our country and our allies is a matter of urgent concern to us all. We are grateful for Lithuania’s trust and support. I promise that we at Rheinmetall will do our part to ensure operational readiness here on NATO’s eastern flank!”
By building the Lithuanian factory, Rheinmetall is continuing its engagement in the Baltic States. The joint venture Lithuania Defense Services in Jonava provides maintenance and support for combat vehicles used by the German 45th Armored Brigade Lithuania (Panzerbrigade 45 Litauen), as well as for other NATO armies and Ukraine.
In the near future, another artillery ammunition plant is to be established in neighboring Latvia. On September 25, a Memorandum of Understanding was signed with the Latvian state defense corporation Valsts Aizsardzības Korporācija regarding the construction of a facility capable of producing several tens of thousands of artillery shells per year.
▶️ Groundbreaking ceremony in Baisogala: Rheinmetall and Lithuania build artillery ammunition plant on NATO’s eastern flankhttps://t.co/LVhmc7pFNj pic.twitter.com/SsQRpAyCFy
— Rheinmetall (@RheinmetallAG) November 4, 2025
Today, together with German @RheinmetallAG, we broke ground for the new ammunition factory in Baisogala – the largest defense industry investment in Lithuania’s history.
For Lithuania, this state-of-the-art facility is not merely an industrial project. It is a strategic step… pic.twitter.com/Ck2ivKl5PO
— Gitanas Nausėda (@GitanasNauseda) November 4, 2025
🇱🇹🇩🇪 A major security milestone for Lithuania: @RheinmetallAG has started building a new artillery ammunition factory in our country. The 155mm shell plant will begin production in 2026, strengthening Lithuanian–German cooperation, our defence industries and regional security. pic.twitter.com/KBG7SZOGFC
— Lithuanian MOD 🇱🇹 (@Lithuanian_MoD) November 5, 2025
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