Lithuania considers state-owned drone holding company to speed up military procurement

Lithuania is considering establishing a state-owned holding company to speed up military procurement and develop its domestic drone industry. Defence Minister Robertas Kaunas said this in an interview with BNS published by LRT on 4 November 2026. The information comes from a single interview; LRT’s reports do not constitute separate confirmation. At the time of publication, Flank has found no independent confirmation. This article will be updated as new information becomes available.

The prime minister supports the idea, but no decision has yet been made

According to Kaunas, the prime minister supports the idea.

For now, this is an intention to introduce a new organisational structure, not a decision to establish a holding company or award a military procurement contract.

From FPV aircraft to interceptor drones

Speaking to LRT/BNS, Kaunas identified FPV drones — flown using a first-person view — interceptor drones, medium- or long-range aircraft and reconnaissance drones as areas he would like to pursue.

This is a broad list of categories of interest, not a technical specification. FPV describes the control method, not a specific combat role. Range alone does not determine an aircraft’s purpose either. The list does not mean that specific products have been selected, that production capacity is ready or that military capabilities have been acquired.

The holding company’s budget and functions remain unspecified

The budget, legal structure, participating companies and specific functions of the proposed holding company have not been specified: whether it would manufacture, invest in companies, pool orders or combine these activities. Nor have any quantities, technical requirements or contracts been announced.

In Flank’s assessment, the value of such a structure would lie in better coordination between the military customer, developers and manufacturers, rather than in its establishment alone. Whether it would actually speed up deliveries could be assessed by the time taken from setting requirements to testing and accepting products, as well as by transparency and competition in procurement.