Lithuania streamlines path for landmark arms factory with Rheinmetall

On Tuesday, the Lithuanian Seimas amended the law, paving the way for major local and Western arms companies. This move primarily aims to streamline the process for the construction of a 155 mm caliber artillery ammunition factory in Lithuania, spearheaded by the German conglomerate Rheinmetall.

Arms companies are set to benefit from expedited processes regarding environmental impact assessments and building permits, ensuring a quick commencement of operations.

The legislative changes, affecting investments, land use, spatial planning, and construction, received overwhelming support from 118 out of 141 members of the Lithuanian parliament.

"Sometimes, a swift government response, reduced bureaucracy, and digital innovation outweigh the benefits of subsidies, loans, or state guarantees and other financial aid," highlighted Auszrine Armonaite, the Lithuanian Minister of Economy and Innovation. According to Armonaite, these amendments have made bureaucratic processes in Lithuania more streamlined and accessible. She further noted, "Lithuania is probably the most accommodating country in Europe for significant investments in the defense and security sectors."

Just last week, Lithuanian officials and Rheinmetall solidified their commitment to this project by signing a letter of intent in Vilnius and commencing negotiations on an investment agreement.

This project marks one of the largest investments in Lithuania's history, with construction slated to begin this year.