Lithuania’s Ministry of Economy and Innovation has signed an agreement with the Ukrainian defense company DEMZ to establish an ammunition manufacturing plant in the country, Delfi reported
The project involves operations in two locations. A new manufacturing facility will be built in the Prienai district, while production will also take place at an existing site in Alytus.
Construction of the new facility is scheduled to begin in autumn 2026, with production expected to launch by the end of 2027.
The plant will manufacture ammunition meeting NATO standards. The production will initially supply the Armed Forces of Ukraine (AFU), with plans to eventually export to allied nations.
The project incorporates research and development initiatives for new technological solutions. DEMZ also stated plans to recruit workers of varying skill levels and implement specialized professional training programs.
Defense cooperation framework
The ammunition plant agreement follows a bilateral defense cooperation pact signed by Ukraine and Lithuania in May.
That agreement focuses on expanding joint production, technology transfer, and defense manufacturing between companies from both nations.
The framework prioritizes the development of unmanned platforms, advanced drone technologies, and air and missile defense systems.
The agreement also includes provisions for Ukrainian military experts to assist in developing modern security capabilities in Lithuania.
Regional security context
Lithuania, which shares borders with the Russian exclave of Kaliningrad and Belarus, has tripled its defense spending since Russia launched its full-scale invasion of Ukraine in 2022.
In July, Lithuanian lawmakers initiated the process of lifting a constitutional ban on stationing nuclear weapons on the country’s territory.
Lithuanian President Gitanas Nausėda stated the change was necessary due to deteriorating geopolitical circumstances, though he noted there were no immediate plans to store nuclear weapons in Lithuania.
Lithuanian officials have cited regional security risks, including mobilization efforts and intensified combat training announced by Belarus, as factors necessitating enhanced defense coordination.