Northrop Grumman announced today that it has signed a Memorandum of Understanding (MoU) affirming its commitment to support local suppliers in the production of medium-caliber ammunition for Infantry Fighting Vehicles (IFVs) in Lithuania.
According to a company statement, this new agreement enables Northrop Grumman to share its technologies and advanced manufacturing expertise with the Lithuanian defense industry, aligning with U.S. policy objectives. The company emphasized that enhancing the indigenous defense capabilities of allies is crucial for replenishing stockpiles and reinforcing munitions supply chains, particularly as demand for artillery shells has surged in response to the ongoing conflict in Ukraine.
Geographically positioned next to the Russian enclave of Kaliningrad, Lithuania has consistently delivered military support to Ukraine throughout the war, supplying munitions such as 155mm artillery shells, M577 armored personnel carriers, drone-jamming systems, and ammunition for Carl Gustaf anti-tank recoilless rifles. Furthermore, Lithuania plans to increase its defense spending to 3 percent of GDP by 2025, surpassing NATO’s target of 2 percent.
“This project with Northrop Grumman will not only strengthen the long-standing relationship between Lithuania and the U.S. but will also create substantial value for both Lithuania and our region,” stated Laurynas Kasčiūnas, Lithuania’s Minister of Defence. He added that, amid security challenges, there is a critical interest in minimizing reliance on lengthy supply chains. “By integrating advanced American technologies, we are not only bolstering our national security but also paving the way for future innovations in the defense industry,” he noted.
Lithuania’s state-owned Giraitė Armaments Plant will also participate in the ammunition production initiative alongside Northrop Grumman, as noted by Lithuania’s Finance Minister Gintarė Skaistė.
In a €670 million ($745 million) acquisition, Lithuania currently operates 89 Boxer IFVs, known as Vilkas (Wolf) in the national service, with the last unit delivered by the end of 2023. Lithuania has expressed interest in acquiring an additional 120 platforms, having initiated negotiations with Boxer manufacturer ARTEC in 2022; however, a formal contract has yet to be finalized.
These vehicles are equipped with Israel’s Rafael Samson Mk II remote-controlled weapons stations, Spike LR anti-tank missiles, and Northrop-made Bushmaster MK44S 30mm chain guns.
The agreement with Northrop Grumman follows a similar memorandum of intent signed with Germany’s Rheinmetall five months ago to establish a factory producing 155mm artillery shells. This future facility is set to be the first of its kind under new regulations governing the development of large-scale defense projects in Lithuania.
