Lithuanian drone maker RSI Europe gets EUR 29.5 mln EU grant

VILNIUS - Lithuanian drone maker RSI Europe, which plans to invest up to 50 million euros in a new factory in the Panevezys region, has received a 29.5 million euro European Union grant.

The project, developed by RSI Europe with its Estonian partner Odin Defence, was selected for funding under the European Defence Industry Programme's Energetic Components call, the Ministry of National Defence said on Tuesday. The initiative aims to strengthen one of Lithuania's defence industry priorities: ammunition production capacity.

RSI Europe Chief Executive Tomas Milasauskas said Tallinn-based military explosives manufacturer Odin Defence would supply explosive chemical substances for a factory in the Panevezys district.

"This is not the sole supplier, but given their production location and ours, their products naturally integrate into our supply chain," Milasauskas said on Tuesday.

He said RSI Europe had agreements with other potential suppliers but declined to disclose further details.

"We are open to all suppliers across the energy component supply chain – metal, plastic, explosives, certification services, testing, and especially human competencies and skills," Milasauskas said.

According to the ministry, RSI Europe's investment will help create jobs, attract skilled specialists and boost the regional economy.

The Ministry of Economy and Innovation signed a major investment project agreement with RSI Europe in mid-September. At the end of September, it was announced that the plant would be built in the Upyte eldership on a plot of nearly 125 hectares. Construction is scheduled to begin in early 2027.

Milasauskas previously said the military equipment produced at the plant would meet the needs of the Lithuanian Armed Forces, although most of its output would be exported.

European Union member states and Norway submitted 83 applications for funding under the call, with eight projects selected to receive a total of up to 166.4 million euros.

The ministry said the joint project by RSI Europe and Odin Defence was the only Lithuanian project selected for funding under the programme's call.