Lithuania, Mach Industries Explore Drone and Engine Production

Lithuania and U.S. defense technology company Mach Industries are exploring production of drone systems and propulsion equipment in Lithuania. The two sides announced a defense cooperation declaration on September 23, followed by a separate agreement on potential manufacturing capacity for propulsion systems and engines at a Lithuanian-U.S. business forum in Miami on September 24. Neither announcement confirms that a factory has been approved or production has begun. 

Lithuanian Defense Minister Robertas Kaunas and Mach Industries President Nathan Diller signed the first declaration. According to Lithuania’s Ministry of National Defence, the parties aim to establish a Mach Industries presence in the country and explore local production of advanced defense systems, including drones. The ministry said some of the systems under consideration have been tested in Ukraine, but did not identify specific products for Lithuanian production. 

The second announcement came from Lithuania’s presidential office on September 24. It said the Ministry of the Economy and Innovation and Mach Industries had agreed to work together on developing production capacity for propulsion systems and engines in Lithuania. The office did not disclose an investment amount, site, production schedule or the equipment that a potential facility would manufacture. 

The proposals would expand Lithuania’s defense industrial links with the United States and could bring production closer to Ukraine. Lithuanian officials have identified support for Ukraine as an objective of the drone cooperation, while stating that any future use of Lithuanian-produced systems by Ukraine would depend on its requirements and other necessary conditions. 

Lithuania is also pursuing domestic production through other companies. Earlier this month, AdriaDefense reported on RSI Europe’s plan to invest up to €50 million in a defense systems facility in Panevėžys. For the Mach Industries proposals, the next concrete milestones would be a disclosed investment, an identified production site and a manufacturing timetable. 

Primary sources: Lithuanian Ministry of National Defence, September 23 and Lithuanian presidential office statement, September 24.