Lithuania weighs state-owned drone industry holding

Lithuania is considering setting up a state-owned holding company for the drone industry to speed up procurement and strengthen domestic production, LRT reported, citing an interview with Defence Minister Robertas Kaunas by BNS.

Kaunas said he would like separate Lithuanian companies to develop FPV drones, interceptor drones, long- and medium-range drones, and reconnaissance drones. The state would act as a financial backer of the holding company, he said.

The structure could also bring in scientists and universities to support technological development and innovation, Kaunas said. He added that it would allow the government to allocate funding more purposefully.

The minister said he had discussed the idea with the Special Investigation Service, the Public Procurement Office and the Defence Resources Agency. They appeared to see potential for such a model, he said, adding that the prime minister supported the proposal.

Kaunas did not say when the holding company might be established. He plans to present the idea to representatives of the drone industry soon. If there is agreement, lawyers will need to determine how quickly it can be set up, he said.

BNS has reported that the Cabinet led by former Prime Minister Inga Ruginienė had planned to establish a defence industry holding company. After Mindaugas Sinkevičius replaced her, the goal was removed from the government programme and replaced with commitments to closer cooperation between the state and industry.