We are pleased to share with you the September 2026 edition of BALTIC INSIGHT – a monthly review providing clear, concise, and reliable analysis of key military, security, and defense developments across the Baltic region. In this edition, we highlight the most important events, emerging trends, and strategic shifts shaping the regional security environment.
ORIGIN and Anduril sign MoU on counter-UAS air defense for NATO's eastern flank
Latvian defence technology company ORIGIN and US defence technology company Anduril have signed a Memorandum of Understanding (MoU) to explore integrating ORIGIN’s BLAZE autonomous counter-drone interceptor with Anduril’s Lattice command-and-control platform.
The companies plan joint testing, demonstrations and validation activities in Latvia to assess how the combined system could support layered counter-UAS defence.
The agreement was signed during a Latvian trade mission to the United States organised by the Investment and Development Agency of Latvia (LIAA).
Finland and Sweden acquire the first Patria TRACKX tracked vehicles
Finland and Sweden have placed the first orders for Patria TRACKX armoured tracked vehicles, with deliveries scheduled to begin in 2027.
Finland will acquire vehicles with related support arrangements and has signed a Letter of Intent on potential future serial deliveries, while Sweden will procure vehicles for testing and evaluation.
Both countries will conduct national field trials, with some testing expected to be carried out jointly.
RSI Europe plans up to €50 million drone factory in Lithuania
Lithuanian drone manufacturer RSI Europe plans to invest up to €50 million in a new defence production facility in Panevėžys district, marking a shift toward industrial-scale manufacturing.
The factory will produce complete attack drone systems, including FPV drones and around 20 system components, while increasing the share of parts made domestically.
Construction is expected to begin in early 2027 and be largely completed by the end of that year.
Finland and Lockheed Martin celebrate historic arrival of first Finnish F-35
Finland celebrated the arrival of its first two permanently based F-35A aircraft in country, marking the beginning of a new era of 5th Generation capability for the Finnish Defence Forces.
"As Finland continues to play an increasingly important role in Nordic, European and NATO security, the F-35 will provide a powerful, connected capability that will help the Finnish Defence Forces meet the demands of an evolving security environment. We are proud to stand with Finland as it brings this critical capability home," said OJ Sanchez, President, Lockheed Martin Aeronautics.
Wolfram Europa signs memorandums with Estonia’s Krattworks and Harmattan AI on warhead production in Latvia
Estonian defence company Wolfram Europa has signed memorandums with Estonia’s Krattworks and French developer Harmattan AI to develop and mass-produce specialised warheads for autonomous defence systems and drones in Latvia.
Production is planned at Wolfram Europa’s €200 million facility near Jēkabpils, which will produce up to 300 tonnes of RDX or 100 tonnes of HMX annually and assemble 200,000 warheads per year.
Wolfram Europa will supply warheads tailored to Harmattan AI’s autonomous systems and Krattworks’ reconnaissance and strike drones. The facility is expected to begin operations in the second half of 2027.
Latvia signs a contract for the purchase of the ‘Morana’ artillery system
Latvia’s Ministry of Defence, the Slovak government and Czech company TATRA Defence Systems have signed a trilateral agreement for 155 mm Morana and rocket artillery systems for the Latvian Armed Forces.
The project is expected to be financed through the EU’s Security Action for Europe (SAFE) instrument. A key condition of the partnership is the gradual localisation of production in Latvia.
It is planned that some of the equipment will be manufactured and assembled in Latvia, with support from companies in the Czech Republic and Slovakia.
Lithuania signs cooperation deal with US defence tech firm Mach Industries
Lithuania has signed a cooperation agreement with US defence technology company Mach Industries to support the company’s expansion in the country.
The agreement covers the establishment of a Lithuanian subsidiary and the development of local capabilities for assembling, integrating and producing advanced defence systems and components.
Mach Industries develops unmanned aviation, space and defence systems and has already demonstrated its Viper autonomous VTOL platform during exercises in Lithuania.
"Epso-G" and VIK intend to invest over 33 million euros in the Rheinmetall plant
Lithuania’s state-owned energy group Epso-G and State Investment Capital plan to invest an additional €33.6 million in the Rheinmetall ammunition plant under construction near Baisogala.
Epso-G is expected to contribute €17.13 million and State Investment Capital €16.46 million through a new share issue in Epso-G Invest, which holds a 48% stake in Rheinmetall Defence Lietuva.
The plant, developed jointly with Germany’s Rheinmetall, will produce 155 mm artillery ammunition and is expected to begin operations around mid-2027.
Lithuania to acquire Sea Hawk gun systems from MSI-Defence Systems for naval vessels
Lithuania will acquire 30 mm Sea Hawk DS30M gun systems from UK defence company MSI-Defence Systems Ltd to strengthen the protection of Lithuanian Navy vessels.
The €5.8 million industrial cooperation agreement covers systems designed to counter aerial threats, including drones and drone swarms, using airburst technology and programmable ammunition.
Cooperation will also include research and development in electronic warfare and surveillance systems, as well as weapon integration.
Latvia's ORIGIN and Poland’s WITU unveil upgraded BLAZE interceptor at MSPO
Latvian defence technology company ORIGIN and Poland’s Military Institute of Armament Technology (WITU) have presented an upgraded version of the BLAZE autonomous counter-drone interceptor at the MSPO international defence industry exhibition in Kielce, Poland.
The system now features a new 700-gram directional fragmentation warhead developed specifically for BLAZE by WITU, with NATO codification and STANAG-compliant safety features.
BLAZE is already in service with Latvia, Estonia, Belgium and France, while ORIGIN is expanding manufacturing partnerships across Europe.
EU defence ministers approve five projects to strengthen European defence
EU defence ministers have approved five European Defence Projects of Common Interest (EDPCI) aimed at strengthening Europe’s defence readiness and industrial competitiveness.
The Baltic states are directly involved in the “Eastern Flank Watch” initiative, which is co-led by Latvia, Estonia and Lithuania together with Poland, Finland and Sweden.
The project will focus on reinforcing the EU’s eastern border through counter-drone and air-defence capabilities, counter-mobility measures, military mobility and land combat capabilities.
The initiatives form part of the European Defence Industry Programme (EDIP), which provides €1.5 billion in funding for 2025–2027.