Lithuania has signed a Memorandum of Understanding with Northrop Grumman to reinforce defence capabilities and industrial cooperation.

The partnership aims to enhance the country’s domestic production of medium-calibre ammunition, positioning Lithuania as a player in regional defence manufacturing while strengthening ties with the United States.

This collaboration is to reduce dependency on global supply chains.

The agreement, formalised between Lithuanian Defence Minister Laurynas Kasčiūnas, Finance Minister Gintarė Skaistė, and Steve O’Bryan, Northrop Grumman’s Corporate Vice President for Global Business Development, paves the way for a deeper alliance between the two nations. Central to this partnership is the production of ammunition for infantry fighting vehicles, a component of Lithuania’s defence.

GlobalData’s “Lithuania Defense Market 2024-2029” report highlights that Lithuania’s Vilkas Infantry Fighting Vehicles (Boxer) is to benefit from this as the turret is armed with a Northrop Grumman 30mm Bushmaster II Mk-44 cannon.

“The partnership with Northrop Grumman, a US defence technology company, is a significant milestone for our defence industry,” said Defence Minister Kasčiūnas. “By integrating advanced Northrop Grumman technologies, we are not only strengthening our national security, but also paving the way for future innovations in defence industry.”

Lithuania, the largest Baltic purchaser of US arms, stands to benefit from this cooperation. Northrop Grumman will support Lithuania in ramping up its production of tactical ammunition for domestic and allied use.

Regional security and significance

The partnership is a move to strengthen security across the Baltic region. Prime Minister Ingrida Šimonytė emphasised the regional importance of this cooperation: “This project, while also strengthening the long-standing close relationship between Lithuania and the US, will create clear value for Lithuania and for our region as a whole, which in the face of security challenges has an interest in minimising dependence on long supply chains.”

This venture is expected to increase investment in Lithuania’s state-owned Giraitė Armaments Plant, expanding its production capabilities.

Estonia, a Baltic neighbour, has also proposed developing a defence industrial park for ammunition production to boost European supply.

A regional powerhouse in ammunition production

Lithuania’s focus on medium-calibre ammunition production is timely, especially as the ongoing conflict in Ukraine strains the supply of defence materials. By building local capacity, Lithuania is positioning itself as a supplier of munitions to its allies. As Finance Minister Gintarė Skaistė remarked, the collaboration is expected to strengthen Lithuania’s "security and preparedness" while benefiting the wider region.

From Northrop Grumman’s perspective, this partnership aligns with its global mission of supporting allied nations through collaborative industrial ventures. Steve O’Bryan, Northrop Grumman’s Corporate Vice President, reaffirmed the company’s commitment: "This collaboration will help grow Lithuania’s defence industrial capacity and is keeping with our company’s commitment to supporting US and allied countries through industry partnerships across the globe.”