Lithuania is investing 300 million euros ($337.4 million) to boost its defense industry capabilities and establish itself as a regional center for the security sector.
Under the Vytis Initiative, the country will operate as a “one-stop shop” for businesses needing concept development and export promotion.
Around 100 defense companies will benefit from the initiative’s push for a stronger research base, aligning with national and international innovation priorities.
The project will also address Vilnius’ long-standing weaknesses in the defense industry, including insufficient early-stage financing, certification and testing infrastructure, limited inter-agency coordination, and innovation funding.
The investment comes months after Lithuania announced it would allocate up to six percent of its GDP on defense each year between 2026 and 2030.
Prioritizing Defense
Lithuania’s export volume is expected to triple by 2030, with the Vytis Initiative adding more than 1 billion euros ($1.13 billion) of value generated by the domestic defense industry.
The investment will target the expansion of innovation support and advisory services, technology testing infrastructure, skills development, business incubation, and pre-acceleration and acceleration activities.
The economy and innovation ministry also expects to attract at least five international defense companies, leveraging the local firms’ wide range of products, services, and components for future partnerships.
The country also anticipates continued collaboration with other countries, such as assembling 30 percent of Sweden’s CV90 infantry fighting vehicles on its soil.
