The project has been granted both the status of national importance and another special status to fast track the investment. This allows Rheinmetall to benefit from special investment and commercial conditions and simplified procedures for planning, land procurement and plant construction. "Rheinmetall establishing operations in Lithuania is a significant step towards meeting our country's immediate defence and security needs. It will help us to ensure uninterrupted access to essential weapons and ammunition, as the products that European defence needs will be produced on Lithuanian soil,“ stated the Lithuanian Economy Minister Aušrinė Armonaitė after signing the agreement. According to the minister, Rheinmetall will invest more than 180 million euros in the new plant, which is expected to produce 155-millimetre artillery shells. At least 150 jobs will be created at the new factory. Rheinmetall executives welcomed the defence agreement at a time when the DAX listed company is looking to ramp up ammunition production. “We at Rheinmetall are very grateful for this long-term partnership with Lithuania. It once again confirms our claim to be one of the pillars of national and international security provision,” stated CEO Armin Papperger. Expressing his gratitude, Maximilian Froch, Rheinmetall’s Head of Strategic Programme Organisation International, added: “We are pleased to be able to make a contribution to national sovereignty in the field of ammunition.” Rheinmetall first confirmed plans for the construction of an ammunition plant in Lithuania in March. A letter of intent was signed with the government in Vilnius in mid-April, before the Lithuanian parliament passed several bills to amend its legislative framework to facilitate the development of large-scale projects and to encourage investment in the defence sector. No specific location for the factory has been announced yet, but the site of the investment project is expected to be made public soon, according to the Ministry of Economics and Innovation. Earlier on, a state-owned plot of land near Radviliškis in north of Lithuania was identified as a possible option. Lithuania hopes to start the construction of the plant soon and that it might become operational in Lithuania by the end of 2025, but Rheinmetall has not yet disclosed any details. “I think there is a possibility to begin production at the end of next year. This would be great,” Lithuanian Defence Minister Kasčiūnas told the Lithuanian news agency ELTA, adding that the investment has both practical and symbolic significance. “The fact that a German company is coming here, investing, and creating jobs is a certain proof of security, too.” Rheinmetall is already active in Lithuania, operating a maintenance centre in Jonava together with the German arms manufacturer Krauss-Maffei Wegmann (KMW) in the country since 2022. The joint venture’s facility, called Lithuania Defence Services (LDS) maintains combat vehicles used by NATO battle groups stationed in the region, as well as military equipment given to Ukraine by Germany.