Lithuania buys 40 mm ammunition from Rheinmetall worth €16 million

German defence giant Rheinmetall announced it has secured new contracts to supply military equipment to Lithuania and Estonia, reinforcing the Baltic nations’ efforts to bolster their defence capabilities amid growing regional tensions.

Lithuania has ordered tens of thousands of 40mm high-explosive fragmentation (HE Frag) rounds worth €16 million. The munitions, designed for use in Rheinmetall-manufactured grenade launchers, will be delivered over a two-year period starting in 2026. The deal was initially signed in December 2024, Caliber.Az reports via LRT.

In a separate contract, Estonia has ordered fragmentation and assault hand grenades valued at approximately €17 million. Rheinmetall said the fragmentation grenades will be delivered between 2026 and 2027, while the assault grenades are scheduled for delivery from 2026 through 2029.

In addition to these supply deals, Rheinmetall also confirmed plans to build a 155mm artillery ammunition plant in Lithuania. The facility will be constructed in Baisogala, in the Radviliškis district, in partnership with Lithuanian state-owned company Epso-G Invest. Completion is expected in early 2027.

Under the terms of the joint venture, Rheinmetall will hold a 51 per cent stake in the new entity, Rheinmetall Defence Lietuvos, while Epso-G Invest will own 48 per cent and Lithuania’s Giraitė Armaments Plant the remaining 1 per cent.

By Sabina Mammadli