Lithuania’s Ministry of Economy and Innovation has signed an agreement with the Ukrainian defense company DEMZ to establish an ammunition manufacturing plant in the country, Delfi reported The project involves operations in two locations. A new manufacturing facility will be built in the Prienai district, while production will also take place at an existing site in Alytus.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official. Construction of the new facility is scheduled to begin in autumn 2026, with production expected to launch by the end of 2027. The plant will manufacture ammunition meeting NATO standards. The production will initially supply the Armed Forces of Ukraine (AFU), with plans to eventually export to allied nations. The project incorporates research and development initiatives for new technological solutions. DEMZ also stated plans to recruit workers of varying skill levels and implement specialized professional training programs. Defense cooperation framework The ammunition plant agreement follows a bilateral defense cooperation pact signed by Ukraine and Lithuania in May. That agreement focuses on expanding joint production, technology transfer, and defense manufacturing between companies from both nations. The framework prioritizes the development of unmanned platforms, advanced drone technologies, and air and missile defense systems. The agreement also includes provisions for Ukrainian military experts to assist in developing modern security capabilities in Lithuania.