The Ministry of National Defence of Lithuania signed a memorandum on industrial cooperation with KNDS Deutschland, Rheinmetall Landsysteme and EPSO-G to establish assembly and maintenance infrastructure for Leopard 2 A8 main battle tanks in Lithuania.
What Is the Leopard 2 A8 Tank Project?
The ministry said Thursday that the project, supported by the Ministry of Economy and Innovation through investment project statues, will involve assembling Leopard 2 A8 tank parts in Lithuania to expedite delivery and bolster the country’s defense industry.
Lithuania Defense Services will invest approximately $58 million, or EUR 50 million, to build a factory in the Kaunas Free Economic Zone, where it will maintain, repair and service the Leopard 2 A8 and other Lithuanian Armed Forces equipment. The project is expected to generate roughly 100 jobs.
LDS Chairman Markus Schmidt estimates that the first locally assembled tank will be delivered in early 2028, with the remaining vehicles to be released by 2030.
As part of the agreement, KNDS Deutschland and Rheinmetal Landsysteme intend to transfer their 25.1 percent stake in LDS to EPSO-G Invest, with detailed cooperation terms to be finalized in 2026.
“For the first time in history part of the cutting-edge equipment of NATO standard will be assembled in Lithuania, while the infrastructure developed in parallel will support its technical readiness in the long-term. This improves Lithuanian Armed Forces capabilities and facilitates growth of the Lithuanian defence industry,” said Minister of National Defence Robertas Kaunas.
Related Contract
In December 2024, Lithuania committed to acquiring 44 German Leopard 2 tanks. Under the agreement, KNDS will deliver the first fleet of tanks in 2029, and complete a full battalion by 2034.