KNDS to Build Leopard 2A8 Tanks in Lithuania

Leopard 2A8 Main Battle Tank | Photo: KNDS Deutschland

Lithuania has signed a memorandum of industrial cooperation with KNDS Deutschland, Rheinmetall Landsysteme and the state-owned EPSO-G group to establish domestic assembly and maintenance infrastructure for Leopard 2A8 main battle tanks. The agreement forms part of Lithuania’s ongoing acquisition of the Leopard 2A8 under a European cooperative procurement framework and is intended to accelerate delivery timelines while expanding local defence-industrial capabilities.

Under the memorandum, Lithuania Defense Services (LDS) — a joint venture between KNDS Deutschland and Rheinmetall Landsysteme — will begin construction of an assembly and maintenance facility in Lithuania for the latest Leopard 2A8 variant. Part of the tanks ordered by Lithuania will be assembled locally, with full maintenance, repair and servicing capabilities established alongside production. The project has been granted major investment project status by the Ministry of the Economy and Innovation, enabling an accelerated implementation schedule.

The agreement also provides for changes in the ownership structure of LDS. A planned transfer of 25.1 percent of LDS shares held by KNDS Deutschland and Rheinmetall Landsysteme to EPSO-G Invest is expected, with detailed cooperation terms to be finalised in 2026.

“This agreement is a milestone in strengthening Lithuania’s defensive capabilities. 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,” said Minister of National Defence Robertas Kaunas.

Energy Minister Žygimantas Vaičiūnas linked the project to broader national resilience goals, stating: “Our energy company EPSO-G Invest is currently on the very important 155 mm artillery ammunition project with other strategic companies, while the commitment made today marks yet another concrete step in expanding our capabilities.”

According to LDS board chairman Markus Schmidt, “the first tank assembled in Lithuania should be released in early 2028, while the remaining will be manufactured as agreed in the Memorandum – by the end of 2030.”

KNDS confirmed that the Kaunas facility will support production of up to 41 Leopard 2A8 tanks, with LDS acting as subcontractor. The agreement also includes five years of logistical support following delivery of the first systems, along with training of local personnel for manufacturing and maintenance tasks.

“This contract is a clear indication that we are able to quickly and easily adapt the production of our products to the challenges facing Europe at this time,” said Ralf Ketzel, CEO of KNDS Germany.

Lithuania joined the Leopard 2 Common Procurement Agreement in 2024 and signed a follow-on contract later that year for 44 Leopard 2A8 tanks. Deliveries are now scheduled between 2028 and 2030, with local assembly expected to shorten timelines and support long-term sustainment for both Lithuanian forces and allied units stationed in the country.