Lithuania considers state drone company to speed military purchases

Lithuania’s Ministry of National Defence is considering a state-controlled drone company to help speed up procurement and support domestic manufacturers, LRT reports. Under the proposal, the state would provide financial backing while local companies made drones ordered by the government.

Lithuanian drone makers say their products attract more demand abroad than at home, and that little investment is going into the domestic market. RSI Europe, a rapidly growing defence technology company that makes drones and remotely controlled explosive devices, says its products are also used by Ukrainian forces. The company plans to invest 50 million euros in a factory in Panevėžys.

RSI Europe can produce 120,000 drones a year and could increase output, but its most recent large order from Lithuania was in 2024. Company director Tomas Milašauskas said the armed forces needed more tools, and argued that a lack of institutional capacity to make procurement decisions was holding back purchases.

Defence Minister Robertas Kaunas said a state-controlled company could help the government and businesses develop products for the Lithuanian military. The armed forces could set out their requirements, he said, while dedicated funding would be available to meet them.

Kaunas has discussed the proposal with the Special Investigation Service, the Public Procurement Office and the Defence Resources Agency. He has the prime minister’s support, and talks with businesses are continuing. The minister said domestic production was also important for securing supply chains.

The article cites Russia’s Geran-4 combat drone as an example of how quickly industry must respond. Its jet engine allows it to fly at 450 to 500 kilometres per hour, and it can climb to an altitude of eight kilometres, making it difficult to intercept, a Ukrainian expert said.

Retired Major Darius Antanaitis said trying to keep pace with the development of drones and counter-drone technology in Ukraine and Russia was not the answer. He said air defence missiles needed to fly faster than jet-powered drones, and that air defence systems should reach speeds of 1.5 to 2 Mach. NATO experts have also stressed the need for large numbers of inexpensive counter-drone tools and greater domestic production.

The idea of a state-controlled drone company is not new, but has not yet been tested.