Rheinmetall is in talks with the Lithuanian government to open an arms factory in the country, according to Economy and Innovation Minister Ausrine Armonaite.
No details have been shared yet. However, it could reportedly produce NATO-standard 155 mm artillery shells.
Rheinmetall senior officials met Lithuanian Prime Minister Ingrida Simonyte in November, but the meeting’s contents were not disclosed.
Meanwhile, German Minister of Defense Boris Pistorius recently said that Ukraine could look forward to an increased ammunition supply in the future as “a second framework contract for the production and supply of artillery ammunition is currently being worked on with Rheinmetall,” according to German Aid to Ukraine.
Arms Production Ramp-Up
Rheinmetall plans to ramp up ammunition production this year, targeting 700,000 artillery rounds from its plants in Germany, Spain, South Africa, and Australia.
Additionally, a Hungarian Rheinmetall plant is being expanded, expected to produce 155mm shells for the PzH 2000 howitzer and 120mm ammunition for the Leopard 2 tanks from 2026.
Construction of the plant’s first phase began in 2023 and is poised to produce 30mm medium-caliber ammunition for Lynx infantry fighting vehicles this year.
Meanwhile, Ukraine recently contracted Rheinmetall to supply tens of thousands 155mm shells in 2025.
The 142-million-euro ($154 million) contract follows an earlier order for the supply of 40,000 rounds to the country in 2024.