Representatives from Europe’s defence industry visiting the Baltic Miltech Summit in Vilnius last week emphasised a pressing need: more procurement orders.
While European manufacturers are still ramping up production, delegates from Ukraine’s defence sector said they are already capable of producing nearly all the weaponry they need – though they’ve had to take some unconventional approaches.
Strengthening ties and striking deals
At the international defence technology conference, growing ties between Lithuania and Germany were on full display.
Representatives of defence giant Rheinmetall signed a symbolic agreement with Lithuanian drone manufacturer Granta Autonomy – a public gesture capping two years of cooperation.
“We aim to integrate Granta Autonomy drones into a range of our vehicles. We want to offer this capability not only to Lithuania’s military but to other allied forces as well,” said Sonke Springer, a Rheinmetall representative.
“Incredible that this is the first time in NATO. We’re not just talking about basic drone integration and video transmission, but full data and coordinate sharing across multiple combat vehicles simultaneously.”
Lithuanian Defence Minister Dovilė Šakalienė, speaking after a series of closed-door meetings at the conference, said this type of mature collaboration is exactly what the country wants to see from its defence sector.
“The state isn’t looking to fund unproven prototypes. We’re looking for refined products that can attract global defence partners,” Šakalienė told reporters. “This isn’t the time for sandbox ideas. It’s time to manufacture – quickly. And the orders are coming.”
Under a regional partnership, Lithuania plans to both procure Swedish CV90 tracked combat vehicles and assemble about a third of all units ordered across the Nordic-Baltic region, according to Prime Minister Gintautas Paluckas. The arrangement is designed to shorten supply chains and generate local revenue.
Robert Limmergard, secretary general of the Swedish Security and Defence Industry Association, said the bottleneck is no longer innovation or manufacturing capacity – it’s contracts.
“Companies can’t expand production lines or hire staff without orders. Even if you have the best product in the world, you might not see any money until a contract is signed,” Limmergard said.
Ukraine’s defence sector moves fast – and adapts
While Western countries navigate procurement bureaucracy, Ukraine has moved swiftly.
According to Arsen Zhumadilov, head of Ukraine’s Defence Resources Agency, the country is now manufacturing nearly everything it needs, though some technologies –particularly in air defence and long-range missiles – still rely heavily on Western support.
“There are multiple ballistic missile programmes underway,” Zhumadilov told LRT TV. “Much of our arsenal is either domestic or adapted from partner technologies. It’s all officially sanctioned.”
Ukraine’s major advantage over its Western allies, he said, is speed and autonomy. Every military unit is granted its own budget and authority to procure weapons directly from suppliers.
This decentralisation has fuelled a rapid expansion in drone development. Ukrainian forces have been directly collaborating with manufacturers, requesting drones tailored for specific missions or regions, then providing immediate feedback for improvement.
One such partner is drone company General Cherry, whose strategy director Stanislav Hryshyn – himself a frontline veteran – said the production model is entirely integrated with battlefield needs.
“We run joint R&D and production centres with the military. Our engineers and theirs work side by side,” Hryshyn said. “Some products are built for one specific area. The gap between idea and prototype is tiny – and that’s our edge.”
Waiting on NATO
Many European industry representatives said a lack of agreements remains the sector’s biggest hurdle. Experts expect the upcoming NATO summit to bring clarity on budget commitments and procurement responsibilities for member states.
Until then, companies are eager – but hesitant – to scale up.
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