Last fall, the construction of an artillery ammunition factory by the German company Rheinmetall (RHM) in Lithuania became a national spectacle, marked by the presence of high-level government officials, including the president and five ministers. The local news agencies noted the factory's construction as one of the most important events of the year, indicating the government's commitment to enhancing military capabilities in the wake of shifting geopolitical dynamics in Europe.

Latvian Prime Minister Evika Siliņa met with Rheinmetall CEO Armin Papperger at the Munich Security Conference this month, expressing gratitude for the investments that RHM is making in Latvia's security, stability, and economic growth. This partnership highlights not only the strengthening of local defense capabilities but also the broader implications of military-industrial cooperation in the region, particularly as Europe seeks to ramp up the production of 155mm artillery ammunition. The urgency is driven by the need to support Ukraine and replenish depleted stockpiles among NATO members.

Rheinmetall aims to produce 1.1 million shells by 2027, a dramatic increase from just 70,000 in 2022, reflecting the company’s strategic positioning as one of the major beneficiaries of increased defense spending. Since the onset of the Russian war, Rheinmetall's stock price has skyrocketed by about 1600%, underscoring the financial implications of geopolitical tensions on defense contractors. Papperger also sought to engage with Estonia’s Foreign Minister Margus Tsahkna, indicating a broader regional interest in defense cooperation and military readiness as tensions persist in Eastern Europe.