EPSO-G Invest and Lithuania Defense Services (LDS) are continuing negotiations on the development of strategic defence industry infrastructure in Lithuania. On 26 May, the parties met at the Lithuania Defense Services military equipment maintenance centre in Jonava to continue discussions on the project.
“The cooperation process is progressing constructively and smoothly, and both parties remain optimistic about the project’s prospects. We expect to resolve all key issues over the summer and move the project into the implementation phase,” says Tomas Varneckas, Head of EPSO-G Invest.
On 11 December 2025, the Ministry of National Defence, together with international partners KNDS Deutschland and Rheinmetall Landsysteme, as well as representatives of EPSO-G Invest, a company within the EPSO-G energy transmission and exchange group, signed an industrial cooperation memorandum for the establishment of assembly and maintenance infrastructure for Leopard 2 A8 main battle tanks in Lithuania.
The project has been granted major investment project status by the Ministry of Economy and Innovation, which will facilitate its accelerated implementation.
Under the planned transaction, EPSO-G Invest will acquire a 25.1% stake in Lithuania Defense Services (LDS), a company jointly managed by KNDS Deutschland and Rheinmetall Landsysteme. The parties intend to finalise the specific terms of cooperation in 2026.
LDS plans to establish a Leopard 2 A8 assembly facility in Lithuania. The company will be responsible not only for tank assembly but also for the long-term maintenance, repair and technical readiness of Leopard 2 A8 tanks and other equipment operated by the Lithuanian Armed Forces.
The first tank assembled in Lithuania is expected to roll off the production line in early 2028. Approximately EUR 50 million will be invested in the project within the Kaunas Free Economic Zone, creating around 100 new jobs.
The project marks an important step in strengthening Lithuania’s defence industry capabilities, expanding local manufacturing and maintenance capacity, and attracting advanced military technologies to the country.
