Germany, Lithuania Begin Construction of New Ammunition Plant in Baisogala

Germany and Lithuania have begun construction of a new ammunition plant in Baisogala, Lithuania, to expand Europe’s defense production amid rising demand for munitions.

The plant will produce NATO-standard 155mm artillery shells, with production expected to reach tens of thousands per year.

The facility, set up jointly with Germany’s Rheinmetall AG and a Lithuanian industrial consortium, occupies an area of 340 hectares and will create employment for approximately 150 people. The modular design allows production to scale and adapt to different ammunition types.

The project comes after an agreement between Lithuania and Rheinmetall in November 2024, and forms part of a broader NATO initiative to expand ammunition manufacturing after the war in Ukraine laid bare Europe's supply vulnerabilities.

Increasing output and diversifying sites will provide NATO allies with strategic autonomy, in addition to reducing munitions bottlenecks. Projects similar to this aim at modernizing production lines across Europe to make supply more resilient.