Lithuania plans clusters for explosives, drone manufacturing, maritime defense

VILNIUS - Lithuania is planning to establish four defense industry-related clusters, open military training areas for testing their products, and set up a new venture capital fund to support the defense industry, Defense Minister Dovile Sakaliene said on Friday.

"The principle is simple - make in Lithuania what you can," she told a news conference at the Military Academy in Vilnius.

LITHUANIA CAPABLE OF PRODUCING MINES

According to the minister, Lithuania first plans to produce the necessary quantities of critical ammunition.

"We are capable of producing anti-tank mines and other types of mines here," she said.

Sakaliene provided details on the four planned critical defense industry clusters.

"The first is the ammunition and explosives cluster. The goal is to have an integrated supply chain for explosives and explosive materials operating in Lithuania, which would allow us to independently supply the Lithuanian Armed Forces and our allies with critical large and medium-caliber ammunition, mines, and other explosives," she said.

According to the minister, Lithuania needs at least 85,000 anti-tank mines, with 50 million euros earmarked for this purpose.

The second cluster is for the manufacturing of drones and anti-drone systems, including long-range missile drones.

"I'll make every effort to attract the development of critical components and technologies to Lithuania. This process is already moving forward quite successfully," the minister said.

The third cluster focuses on the production and repair of critical military equipment.

"Yesterday, we spoke with the Poles about the fact that in certain areas, we are already capable of providing them with assistance and maintenance services when it comes to heavy weaponry," Sakaliene said.

MILITARY TRAINING AREAS TO OPEN FOR TESTING PRODUCTS

The minister said Lithuania also plans to use its "strong civilian maritime cluster" for defense purposes.

"They're ready to transition into the military file and we'll create the necessary conditions for that," Sakaliene said.

"I've spoken with defense ministers from several countries and with the defense industry about how we can involve Lithuanian shipyards. They're ready, eager to cooperate, and fully capable of doing so," she added.

According to Sakaliene, Lithuania is currently holding the most intensive cooperation talks with defense industry manufacturers from the US, Germany, Ukraine, and the Nordic countries.

"We'll continue to support our businesses through state orders and purchases. The goal is to pass the necessary amendments during the spring session to establish a real green corridor for the defense industry," she said.

This category of weapons includes military rockets with explosive warheads, automatic firearms, ammunition with armor-piercing, explosive or incendiary projectiles, all calibers of cannons, howitzers, mortars, grenade launchers, grenades, all types of bombs, torpedoes, mines, and so on.

Plans also call for providing 10 million euros to the MILIinvest fund for defense startups and setting up a new venture capital fund to support the defense sector.

"We'll allocate 20 million euros for this at a later stage," Sakaliene said.

The minister also said manufacturers will be given access to military training areas to test their products.

"Where we see a critical need for our military, we'll open training areas for our industry's products to be tested and trialed," she said.

Sakaliene said the government has a clear model for integrating innovation into the Armed Forces.

"We also have a vision for creating a holding company for defense sector enterprises with state capital so that we have a really well-functioning defense industry ecosystem," she said.

'ACT AS IF WAR WERE TOMORROW'

Sakaliene emphasized that Lithuania needs to adopt a wartime mindset.

"Everyone must be ready to act with what they have. When the time comes, there won't be time to reorganize or change procedures, so we have to change everything now and act as if the war were tomorrow," the minister said.

"There'll definitely be no war tomorrow, but we must be ready to act on that principle," she added.

According to Sakaliene, her goal is not just to have "plans on paper" but to test them in practice, which is why more military exercises are being planned.

"All functions and units of the national defense system will be evaluated based on how they contribute to countering a potential aggressor. If a unit has a clear defense function, it will be strengthened. If its contribution to defense is difficult to identify, resources will be reallocated accordingly," she explained.

To improve the country's defense system, a new task force will be created, which the minister currently refers to as "speed".

"The goal is to review processes within the national defense system and streamline procedures by eliminating unnecessary regulations, internal rules, and other bureaucratic hurdles," she said.

Sakaliene stressed that Lithuania, together with its allies, is closely monitoring "every move Russia makes".

"We watch every movement of Russian tank columns, every aircraft flight, and every missile launch. We see and hear what they're doing," she said.

Sakaliene, who visited the United States last week, said there are no indications that the American presence in the region could be reduced, but there is a possibility that it may increase.

"Recently, you've clearly heard statements from the White House about a possible additional deployment of forces in our region to make sure everyone feels secure," the minister said.

"In the near future, I also plan to hold discussions with senior US administration officials, and I hope we'll be able to discuss the possibility of increasing the forces in our region," she added.

ARMS CONTRACTS TO BE SIGNED BY 2027

Sakaliene said that the Defense Ministry aims to sign all major weapons procurement contracts by 2027.

"We have the absolute majority, but there are still a number of contracts that need to be concluded. These include not only acquisitions to make the division heavier but also enablers such as air defense, military engineering, intelligence, logistics, and other systems," she said.

Sakaliene noted that military development will also include "maritime situational awareness".

"We have plans to develop additional capabilities in the coming years for certain information exchange with NATO allies and (to acquire) additional underwater monitoring equipment. Port and coastal defense will also be strengthened, and acquisitions are planned - from certain ships to certain other things," she said.

According to Sakaliene, Lithuania, in partnership with other Baltic Sea countries, will modernize its naval fleet.

"Intensive talks are currently underway on procurement to choose our partner and determine the next steps," she said.

In addition to the air defense battalion being developed within the division, plans call for creating a medium-range air defense battalion.

"Additionally, we'll have several NASAMS batteries and batteries like MSHORAD," Sakaliene said.

Lithuania is ramping up its defense capabilities in response to the deteriorating geopolitical situation. The State Defense Council has decided to aim for an additional 12 billion to 13 billion euros in defense funding by 2030, which would raise defense spending to 5-6 percent of GDP.

Lithuanian intelligence has said in a report that within three to five years, Russia could develop sufficient capabilities for limited military action against NATO, although this timeframe would not be enough for preparing for a large-scale war with the Alliance.

Russia plans to boost its military personnel to 1.5 million, an ambition that Lithuanian intelligence considers "feasible".