Rheinmetall Commences Construction of Ammunition Facility in Lithuania

Written by Emily J. Thompson, Senior Investment Analyst

Source: SeekingAlpha

Updated: Nov 04 2025

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Source: SeekingAlpha

Major Investment in Lithuania: Rheinmetall has begun construction on a €300 million ammunition factory in Baisogala, Lithuania, which will produce 155-millimeter artillery shells and is the largest defense investment in the country's history.
Strategic Defense Hub: The facility will enhance Lithuania's role as a defense hub amid regional tensions, with plans for initial production of 35,000 rounds annually, scaling up to 100,000 by 2027, and will create around 400 jobs.
Expansion of Defense Manufacturing: Rheinmetall is also planning a second factory in Lithuania for propellant charge production and is expanding its operations in Eastern Europe, including new facilities in Bulgaria, Romania, and Latvia.
Increased Defense Spending: Lithuania aims to raise its defense spending to over 5% of GDP by 2026 to bolster its military capabilities and support the incoming German brigade.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.