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Lithuania strengthens national defence industry with a new Memorandum of Understanding on producing ammunition in Lithuania

Republic of Lithuania - Ministry of National Defence

2025-06-24
International cooperation | Security and defense policy

The Ministry of National Defence and the Ministry of Finance of Lithuania signed a Memorandum of Understanding with a U.S. defence technology company Northrop Grumman and Norway's ammunition-manufacturing company on production of medium calibre ammunition at Giraitė Armament Factory in Lithuania. This is a new milestone in strengthening the potential of the Lithuanian defence industry and expanding the ammunition manufacturing capability.

The MoU is set to intensify the talks with the U.S. and Norwegian companies on building a new factory in Lithuania for design and production of medium calibre ammunition (20-50 mm) for the Lithuanian Armed Forces. The project would be implemented in cooperation with the state-owned Giraitė Armament Factory.

"The agreement was required to back up the development of the Lithuanian Division by 2030 and to strengthen Lithuanian Armed Forces capabilities so as to increase the country's strategic defence autonomy and deepen the partnership with NATO Allies U.S. and Norway. The planned ammunition production is of critical importance for the Lithuanian Armed Forces, the Allies and Ukraine," says Minister of National Defence Dovilė Šakalienė. She also underscores that the production would primarily fulfill Lithuania's needs in an uninterrupted manner in light of the grown national defence requirement.

"The investment made and expertise contributed by our U.S. and Norwegian Allies in implementing this defence project with Giraitė Armament Factory will significantly boost the effort to strengthen the national defence industry and security not just in Lithuania but also regionwide, including Ukraine. Development of the defence industry and investment in production are the areas we have no time to spare with," says Minister of Finance Rimantas Šadžius.

"As we strengthen the national defence industry, our investment is made not just in technological capacity but also in Lithuania's crisis resilience. Our agreement will not only improve the supply for our military but will also position Lithuania as a robust link in international supply chains. It is a long-term investment in national and regional security which will yield results not just today but in the future as well," says Vice Minister of National Defence for defence procurement, defence and security industry development Loreta Maskaliovienė.

"This is yet another commitment made by Northrop Grumman to strengthen the international partnership and NATO defence capabilities. This cooperation will accelerate the provision for the most vital defence needs and will be beneficial for the long-term for the United States and Lithuanian defence industries," says Stephen O'Bryan, Corporate Vice President, Global Business Development, President Northrop Grumman International.

"NAMMO is happy to join the initiative. We will work with Lithuania and Northrop Grumman to strengthen and develop the defence industry basis and to ensure ammunition provision to the Allies," points out CEO of Nammo Defense Systems Morten Brandtzæg.

Giraitė Armament Factory will received the transferred techniques of 35 mm ammunition production, the equipment required, technical and practical know-how. Once that is fully mastered, Giraitė Armament Factory will be capable of producing ammunition compatible with the technical parameters of armament systems utilized in the Lithuanian Armed Forces which will ensure operational compatibility and efficient use to meet the defence needs.

Implementation of the project is planned to include Giraitė Armament Factory in the international supply chains of Northrop Grumman, while the U.S. company will actively partner in offering the production made in Lithuania on the international markets. While NAMMO, one of the leading ammunition manufacturers in Europe and North America with manufacturing sites in 9 countries, will be in the role of subcontractor supplying 35 mm ammunition production technology for Northrop Grumman.

The MoU comes into force in place of the MoU signed between the Ministry of National Defence, Ministry of Finance and Northrop Grumman on 23 September 2024.

Giraitė Ammunition Factory has been focused on highest quality ammunition production for two decades and had earned international fame. The State of Lithuania is the single shareholder of the company, the rights and obligations of the shareholder are exercised by the Ministry of Finance.