Lithuania signs memorandum with one of world's leading arms manufacturers on medium-caliber ammunition.

Lithuania has signed a memorandum with American Northrop Grumman Corporation, one of the leading global aerospace and defense technology companies, to produce and supply medium-caliber ammunition, the Lithuanian Defense Ministry said on Sept.

23. Since the beginning of Russia's full-scale invasion in 2022, the EU states have been making efforts to ramp up their weaponry production to backfill Ukraine's needs on the battlefield and strengthen their own arsenals due to a potential Russian threat. The memorandum was signed by Lithuanian Defense Minister Laurynas Kasciunas, Lithuanian Finance Minister Gintare Skaiste, and Northrop Grumman Corporation's Vice President Steve O'Bryan, according to the statement.

The Lithuanian authorities said they expect the ammunition production project with Northrop Grumman could bring "significant" U.S. investment to the country. "This project will be another important step forward in developing Lithuania's defense industry. We hope that the cooperation with our American allies will strengthen the country's security and preparedness while also benefiting the wider region, including Ukraine," Skaiste said.

Lithuania remains the largest purchaser of U.S. arms among the Baltic States. The average value of the Lithuanian Defense Ministry's arms purchases from the U.S. amounts to nearly 1.3 billion euros (£1.4 billion) over the medium term. This represents one-fifth of all planned defense acquisitions, the statement read.

Lithuania signed a deal with another arms company, Germany's Rheinmetall, in June to build a domestic ammunition plant. The project's investment is more than 180 million euros (around £195 million). Apart from strengthening the Lithuanian defense sector, the new plant is expected to create at least 150 jobs, according to Lithuanian Economy and Innovation Minister Ausrine Armonaite.

Previously, Rheinmetall said it would also build an artillery factory in Ukraine, along with facilities dedicated to the production of military vehicles, gunpowder, and anti-aircraft weapons. During the Munich Security Conference in February, Rheinmetall CEO Armin Papperger signed a memorandum of intent with then-Ukraine's Strategic Industries Minister Alexander Kamyshin to produce artillery shells in another joint plant based in Ukraine.

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