Lithuania’s Defence Industry – A Significant Potential for Strengthening National Security
Lithuania’s Defence Industry Holds Significant, Yet Untapped Potential for Strengthening National Security. Lithuania's defence industry has considerable, though still underutilized, potential to enhance the country’s security. By involving local manufacturers, it is possible not only to ensure the reliability of strategic supply chains but also to make a meaningful contribution to economic growth—over a quarter of invested funds could remain in Lithuania, fostering innovation and job creation.
"We must strive to ensure that as much of the expenditure on military equipment and technologies as possible stays in Lithuania. The local defence industry can carry out a significant portion of this work, potentially retaining around €4 billion within the Lithuanian economy, directly strengthening both national security and the defence sector," said Vaidas Sabaliauskas, Director of the Lithuanian Defence and Security Industry Association (LDSIA).
These issues were discussed on Monday at a meeting of the Seimas National Security and Defence Committee (NSDC), attended by committee members, defence industry representatives, and leaders of relevant ministries. The discussions highlighted the need to evaluate upcoming large-scale procurements by the Ministry of National Defence through the lens of maximizing economic benefits for Lithuania, ensuring that as much of the military equipment, tools, and technologies as possible are developed by local companies.
It was emphasized that in strengthening Lithuania's defence capabilities, industrial cooperation should not be limited to the production of military equipment parts or components but should also extend to other products and services that Lithuanian companies can offer for defence purposes.
Industrial cooperation is a strategic agreement between businesses and governments aimed at integrating local companies into international production, supply, or service chains. In the defence sector, this may involve technology transfers, joint production lines, or the integration of local components into products developed abroad. This approach stimulates the local economy, strengthens supply chains, and ensures greater strategic autonomy. Often, industrial cooperation is one of the key conditions in large government defence procurements.
Another crucial topic discussed at the NSDC meeting was the regulatory environment for the defence industry. Unbalanced legal regulations remain one of the main obstacles to the development of local manufacturing, particularly concerning weapons parts and semi-finished products. We are pleased that these concerns are being addressed—NSDC Chairman Giedrimas Jeglinskas proposed that the relevant ministries draft a balanced package of legislative amendments to allow local companies to participate more effectively in supply chains and increase their contribution to national defence.
LDSIA will continue to actively cooperate with government institutions and the business community to ensure that the development of the defence sector proceeds strategically, transparently, and efficiently.
