Lithuania's new laws ease permitting for foreign defense firms, boosting ammunition production initiatives. Rheinmetall leads with a new plant, while other companies like Northrop Grumman join to enhance regional security, including cooperation with Ukraine.

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Lithuania has introduced new legal amendments to attract foreign defense manufacturers by simplifying the permitting process for ammunition production. The government now categorizes such projects as "pressing national security needs," granting regulatory exemptions. Rheinmetall of Germany leads this initiative by constructing a 155mm artillery ammunition plant in Baisogala, which will begin operations in mid-2026. This facility is projected to provide tens of thousands of rounds annually for the Lithuanian Armed Forces. Other firms, including Northrop Grumman from the U.S., are also exploring opportunities under this framework. They aim to strengthen regional security, particularly concerning Ukraine. Recent agreements between Lithuania and Ukraine focus on cooperative defense production, encompassing drones, naval systems, electronic warfare, and munitions. Lithuanian officials believe that self-reliance in armaments production is crucial amid ongoing geopolitical tensions.