Lithuania was the first NATO Ally to announce in January 2025 that it would increase its defense spending to between 5-6% of GDP annually from 2026-2030. Increased spending creates sales opportunities for U.S. defense firms, and the government is actively pursuing defense investment and co-production opportunities with U.S. industry, seeking to build a robust domestic defense industry that can supply both Lithuania and its allies, including NATO, the EU, and Ukraine.  It has implemented a streamlined process known as the Green Corridor to reduce bureaucratic hurdles and incentivize large-scale investment in defense. The time required to set up a large manufacturing facility has been cut from roughly two years to as little as six months, and qualified projects can receive a 0% corporate income tax rate for up to 20 years.  Lithuania is also systematically integrating unmanned aerial systems across its armed forces at all levels and plans to dedicate approximately 200 million euros for drone procurements until 2030.   

The government also offers Green Corridor incentives for large-scale non-defense investment projects that meet the requirements of investing at least €20 million CAPEX (€30 million when investing in Vilnius) and creating at least 150 new full-time jobs (200 when investing in Vilnius) in manufacturing or data processing/internet server hosting services.  Such projects will enjoy a 0% corporate income tax for up to 20 years.  

Lithuania plans to build up to five small modular reactors (SMRs) by 2038 to provide reliable, consistent baseload energy and intends to select an SMR technology by the end of 2028. Lithuania signed an intergovernmental agreement on civil nuclear energy cooperation with the United States in 2024 that paves the way for U.S. SMR and engineering, procurement, and construction firms to be strong competitors. Almost three quarters of the liquified natural gas (LNG) that Lithuania imports through its Klaipėda Independence terminal comes from the United States, and the government seeks to further increase U.S. LNG imports to expand deliveries of U.S. LNG to Ukraine to enhance Ukraine’s energy security and diversify supplies away from Russia. Lithuania also aims to produce all its electricity from renewables, particularly wind and biomass, and increase its solar capacity by 500 percent by 2030.

Major infrastructure projects currently pending or underway include decommissioning of the Ignalina Nuclear Power Plant; construction of the Via Baltica highway and the Rail Baltica railway to connect the Baltic countries to the rest of Europe; expansion and modernization of the Klaipeda seaport facilities; and construction and modernization of electric power transmission lines to Poland and Sweden.

Thanks to its business-friendly regulatory environment and supportive government policies, Lithuania is a leading European financial technology (fintech) hub. This ecosystem has attracted hundreds of fintech firms.

The life sciences industry in Lithuania is one of the fastest growing in the EU, with some reports citing an annual growth rate of 25%, driven by government support and an ambition for the sector to make up 5% of GDP by 2030. Key areas of development include biomanufacturing and advanced biotechnology, particularly cell and gene therapies. The biotech sector alone saw a 900% increase in revenue over the last decade.  

Finally, Lithuania is a global leader in laser technology, with a thriving science-industry ecosystem that has produced world-class ultra-short pulse lasers and optical components, including optical parametric amplifiers. Lithuanian lasers are used by major global entities like NASA, CERN, and major universities, with over 80% of production exported worldwide.