By Matt Underwood Rheinmetall Starts Building $346M Artillery Ammunition Plant in Lithuania: Let’s dive right in, shall we? This news is a big deal, signaling a significant investment in the defense of the Baltic region. It’s certainly a vote of confidence in the region’s security and a tangible step towards bolstering Europe’s defense capabilities. We’re talking about a facility that, once operational in 2026, will be churning out tens of thousands of 155mm artillery shells annually. That’s a serious commitment.
Now, you might ask, why Lithuania? Why so close to a potential front line? Well, it’s a valid question, and one that sparks some interesting debate. Some might argue that strategically, it seems risky. They might bring up scenarios of the factory being in the crosshairs of any conflict. The proximity of the plant to a potential conflict zone is a point of contention for some. However, others see it differently. They point out that the strategy of positioning the factory at the potential border of the conflict makes sense, and is part of a larger plan by NATO.
The move is part of a broader trend, a surge in defense production across NATO’s eastern flank. This is driven by the very real and growing demand for artillery and ammunition, especially since Russia’s full-scale invasion of Ukraine. It seems that Rheinmetall has been expanding its presence in Central and Eastern Europe, with plans for a similar plant in Latvia. This makes a lot of sense if you think about it. These nations need the capability to produce locally, lessening the reliance on other nations to deliver crucial supplies if things get dicey.
There’s also the factor of local investment. Having Western metal, literally and figuratively, on the ground provides a financial stake in the region’s security. It’s about establishing goodwill and fostering strong economic ties, which are essential for long-term stability and cooperation. It also shortens the supply chain to the front line.
The reality is that NATO isn’t planning on losing Lithuania. It’s a “Maximax” strategy, aiming to maximize the potential for winning. While placing an artillery factory in a more remote location might make sense from a purely defensive standpoint, it could hinder the ability to supply the front lines and could weaken relationships with the nations on the front line. Think about it this way: Germany during the Cold War had significant military production capacity. It wasn’t about building production capacity in a location that could be isolated. It was about placing production capacity where it would be most needed. And if a large portion of Lithuania is occupied, and is able to run a local artillery factory, then that represents a complete failure by NATO.
There are many factors at play here. Lithuania is likely cheaper to build and operate in. Rheinmetall, after all, answers to its shareholders. The company has to take into account many scenarios when deciding on a location. Also, the Russian military doesn’t use 155mm weapons. And if a war does break out, there will be other factories in the EU which can replace the production if the Lithuanian factory is damaged or destroyed.
So, why Lithuania? There are many good reasons. Shorter supply chains, foreign investment, jobs for the region. Having a factory on the front lines means that production is where it is needed, which makes all the difference when war breaks out. When you are talking about the military, artillery shells are a big deal to move around.
It’s easy to dismiss this as “building an ammo plant for the Russians.” But that’s a narrow view. If the Baltics are lost, the war is basically lost. It is more than just about the West. Lithuania’s location is a strategic choice, based on the assumption that any help will be available quickly. Having local factories to supply their own military is always preferable.
There are also logistical considerations to keep in mind. The Baltic states are vulnerable to land routes being cut off from other NATO states if Russia were to take the pass between its mainland and Kaliningrad. If all production is housed west of Kaliningrad, the Baltics become much more vulnerable.
Of course, the concern is valid: if the Russians come, they will bomb the factories near the border first. It’s a calculated risk, but the potential benefits of local production are significant. The potential benefits far outweigh the risks.