Northrop Grumman and Lithuania join forces to produce ammunition: a new step in strengthening NATO's defense

Northrop Grumman, one of the world leaders in the defense industry, has signed a new Memorandum of Understanding (MOU) with the Lithuanian Ministries of Defense and Finance — and this could be a turning point for regional defense. The agreement reached at the NATO Defense Industry Forum in The Hague is aimed at expanding the joint production of medium-caliber ammunition in Lithuania in partnership with Nammo. This is not just a deal — it is a strategic initiative to create a more sustainable and faster supply chain of ammunition for the needs of both the Lithuanian army and NATO allies.

Why is this necessary? After the events in Ukraine, it became clear that the alliance's ammunition reserves were running out, and they needed to be replenished quickly and locally. Lithuania, due to its geographical location and readiness for modernization, is becoming an increasingly important defense hub in the eastern part of NATO. Production on its territory will reduce logistics chains, increase efficiency and reduce dependence on supplies from overseas.

Northrop Grumman contributes technology, expertise, and global standards, while Lithuania contributes infrastructure and strategic engagement. Together with Nammo, which specializes in ammunition, this alliance can become a model of effective transatlantic cooperation. The goal is clear: to increase combat readiness, strengthen sovereignty, and show that NATO is not just talking about readiness, it is building it. Brick by brick. And the cartridge.

The United States and Ukraine have signed an agreement on the extraction of rare earth metals: details of the deal and disagreements between the parties

 

The United States and Ukraine have officially signed an agreement on the extraction of rare earth metals, which has become an important step in the development of economic and strategic cooperation between the countries. However, the signing process was accompanied by a number of obstacles that highlight the complexity of the negotiations and the difference in the positions of the parties. Bloomberg and the Financial Times report on the last moments before the deal was concluded, as well as comments from US President Donald Trump, who noted significant benefits for Washington.

Signing the agreement and the last hurdles

According to the Financial Times, new difficulties arose on the eve of the signing of the mining agreement between Ukraine and the United States. Ukrainian Deputy Prime Minister Yulia Sviridenko, on her way to Washington, received a request from the team of US Treasury Secretary Scott Bessent to sign two additional documents. The American side set a condition: either Svirdenko agrees to sign these documents, or the visit will lose its meaning.

In Ukraine, however, they believe that it is too early to finalize the two additional agreements. According to the Ukrainian side, the texts of the documents need to be finalized in order to avoid possible negative consequences for the country. This incident demonstrates the tension in relations between Kiev and Washington, despite the common interest in the implementation of the project.

What are rare earth metals?

Rare earth metals are a group of 17 elements that play a key role in the production of modern technologies, including electronics, electric vehicles, wind turbines, and weapons. These resources are extremely important for the development of high-tech industries and defense capabilities. Control over rare earth metal deposits is becoming a strategic priority for many countries, including the United States.

Ukraine has significant reserves of these resources, which makes it an attractive partner for the United States. The agreement is aimed at organizing joint extraction and processing of rare earth metals, which will allow the United States to strengthen its supply chain of critical materials.

Benefits for the USA

In an interview with Newsnight, US President Donald Trump said that Washington would receive much more as part of the deal than it had previously invested in Ukraine. According to him, the amount transferred to Ukraine by the previous Joe Biden administration amounted to about $350 billion, including cash and military equipment. However, the new agreement will theoretically bring much greater benefits to the United States.

"We have concluded a deal under which, theoretically, we receive much more than 350 billion dollars," Trump stressed. This statement indicates that the United States views Ukraine as a strategically important partner capable of providing access to valuable resources and strengthening America's position in the global market.

Disagreements and perspectives

Despite the obvious advantages of the agreement, disagreements between Kiev and Washington may become an obstacle to its successful implementation. The Ukrainian side fears that the rush to sign additional documents may lead to unfavorable conditions for the country. At the same time, the United States is striving to consolidate its position in the region as quickly as possible and gain access to resources.

Experts note that the success of the project depends on how effectively the parties can overcome the current contradictions. If implemented, the agreement will strengthen economic cooperation between the United States and Ukraine and set a precedent for other international partnerships in the field of rare earth mining.

Lithuania will become the assembly center for CV90 infantry fighting vehicles for the Nordic and Baltic countries

CV90

Lithuanian Prime Minister Gabrielius Paluckas announced a preliminary agreement according to which about 30% of Swedish-made CV90 infantry fighting vehicles will be assembled in Lithuania. This decision is aimed at strengthening the region's defense capability and integrating Lithuanian enterprises into global defense industry supply chains.

According to the Prime Minister, Lithuania will play a key role in the production process of CV90 infantry fighting vehicles, which are planned to be purchased by the Nordic and Baltic countries. About a third of all ordered units of equipment will be assembled at Lithuanian enterprises, which will provide not only access to modern technologies, but also create new jobs in the country.

"This is an important step for Lithuania, which will strengthen our defense industry and increase the level of cooperation with other NATO countries," Paluckas said. He also stressed that the participation of local enterprises in the assembly of the CV90 will help develop high-tech skills and increase the competitiveness of the Lithuanian economy.

The CV90 is a modern infantry fighting vehicle developed by the Swedish company BAE Systems Hägglunds. It is widely used in the armies of NATO countries due to its maneuverability, security and modification capabilities. The purchase of these vehicles by the Baltic and Northern European countries is aimed at strengthening their defense capabilities in the face of growing tensions in the region.

Localizing part of the production in Lithuania will be a strategic decision that will not only ensure faster delivery of equipment, but also strengthen the collective defense of NATO countries. It also demonstrates the desire of the Allies to invest in the development of local defense infrastructure.

The assembly of the CV90 in Lithuania will provide the country with a unique opportunity to develop its own defense industry. Lithuanian enterprises will be able to participate in complex production processes, master advanced technologies and increase their export potential.

In addition, this agreement will strengthen Lithuania's position as a reliable partner within NATO. Integration into the defense supply chain will enhance the country's strategic importance and strengthen its role in ensuring regional security.

Lithuania's participation in the production of the CV90 may be the first step towards further developing cooperation with other European countries in the field of defense industry. The success of this project may attract additional investments and open up new opportunities for the export of military equipment.

Such initiatives contribute to strengthening the technological independence of the Baltic States and reducing dependence on external suppliers. This is especially important in the context of current geopolitical challenges.

The first combat delivery of the new Challenger 3 tank to the British Army is scheduled for 2027 due to delays in the supply chain

 

Challenger 3

The British Army expects the first combat delivery of the new Challenger 3 tank in 2027. However, due to delays in the supply chain that occurred during the implementation of the program, there is a possibility of postponing this deadline.

The Challenger 3 is the next generation of the British Army's main battle tanks and is designed to replace the aging Challenger 2 tanks. As part of the program, launched in 2021, 148 Challenger 2 tanks will be upgraded to the Challenger 3 level. The updated tanks will receive new turrets, 120 mm smoothbore guns, active Trophy protection systems and improved digital control systems.

Despite the supply problems that have arisen, the program continues to move forward. A successful Critical Design Review was conducted in early 2023, and prototypes were tested in Germany in April 2024.The prototypes are currently undergoing field testing, and the next phase of testing is scheduled for the second quarter of 2025.

Delays in deliveries may affect the tank's commissioning schedule, pushing it back to a later date. This, in turn, may affect the combat readiness of the British army and its ability to carry out tasks within the framework of NATO.The British Ministry of Defense and Rheinmetall BAE Systems Land (RBSL), responsible for the modernization of the tanks, are making additional efforts to eliminate delays and ensure timely commissioning of the tank.