This Eastern European country braces for the worst with a historic order of 100 armoured vehicles worth an estimated €1 billion

Long overshadowed by its powerful neighbour Russia, Lithuania is now pouring unprecedented sums into modern combat vehicles, signalling that it expects the regional security crisis to last for years rather than months.

Lithuania’s billion-euro bet on the cv90 mkiv

Lithuania has confirmed plans to buy 100 CV90 MkIV infantry fighting vehicles, a modern tracked armoured vehicle developed by BAE Systems Hägglunds in Sweden. The deal, expected to approach €1 billion once support, training and weapons are counted, marks one of the largest defence investments in the country’s history.

The CV90 family is already a familiar sight in Northern Europe. Designed in the 1990s for harsh Scandinavian terrain and constant threat environments, it has been steadily upgraded. The MkIV variant brings new electronics, better protection and a stronger engine.

The Lithuanian order positions the CV90 MkIV as a de facto Nordic-Baltic standard for front-line mechanised infantry.

Officials in Vilnius describe the purchase as both a military necessity and a political signal: Lithuania does not plan to wait passively for NATO reinforcements if a crisis erupts. It wants well-armed, mobile units ready on day one.

What the cv90 mkiv actually brings to the battlefield

The CV90 MkIV is not a tank, but an infantry fighting vehicle (IFV). It transports soldiers, fights alongside them and keeps pace with modern armoured formations.

Key capabilities include:

  • A 30mm or 35mm autocannon capable of engaging infantry, light vehicles and drones.
  • Advanced armour packages that can be tailored to different threat levels.
  • Modern sensors and battlefield management systems that share data with allied units.
  • High mobility on rough terrain, including snow, mud and forest tracks common in the Baltic region.

For Lithuania, which borders Russia’s Kaliningrad exclave and Belarus, these features matter. The country expects any major conflict to involve electronic warfare, drones, artillery and long-range missiles. Vehicles that can “see” threats early, move quickly and coordinate with allies have a better chance of surviving.

The new vehicles are meant to give Lithuanian troops faster reaction times and cleaner situational awareness than the Soviet-era platforms they replace.

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A northern armoured club – and why it matters

By choosing the CV90 MkIV, Lithuania is not buying in isolation. It is joining what officials describe as a “Nordic CV90 community” that already includes Sweden, Finland, Norway, Estonia and the Netherlands.

This group of countries operates similar variants of the same vehicle, trains together and shares doctrine.

Shared platforms, shared logistics

Using the same vehicle as neighbours brings practical advantages during both peace and war. Armies can coordinate training and maintenance, and they can tap each other’s stockpiles in a crisis.

Among the expected benefits of this “CV90 club” are:

  • Common spare parts pools and repair procedures.
  • Interchangeable crews that can quickly understand each other’s tactics.
  • Joint training exercises with lower costs and fewer compatibility issues.
  • Simpler integration into NATO missions and multinational battlegroups.

For NATO planners, having several front-line states on the same armoured platform is almost as valuable as increasing troop numbers.

This interoperability is especially relevant in the Baltic region, where allied reinforcements would likely need to move quickly across borders and plug into local command structures under intense pressure.

Money, timelines and industrial politics

A contract likely above €1 billion

Exact figures for the Lithuanian deal have not been released, but past CV90 contracts offer clues. Earlier orders placed the unit price between roughly $10–12 million per vehicle, depending on configuration, support packages and weapons.

Once training, maintenance infrastructure, spare parts, ammunition and long-term support are added, the full programme cost for 100 vehicles could exceed €1 billion. That is a substantial bill for a country of fewer than three million inhabitants.

The contract signature is planned for early 2026, with first deliveries expected in 2028. That leaves a few years for Lithuania to prepare barracks, training ranges, simulators and logistics chains tailored to the new fleet.

Building capabilities at home, not just buying from abroad

Lithuania is pairing its CV90 purchase with a broader push to develop its own defence industry. The war in Ukraine has shown how fragile long global supply chains can become once fighting starts. Parts run late, workshops are overloaded and vehicles sit idle.

Vilnius wants more repairs and assembly work done on Lithuanian soil. A key player in this shift is EPSO-G, a state-owned company previously focused on energy infrastructure. It is now being repositioned as a backbone of the emerging defence sector.

One flagship project illustrates this strategy: EPSO-G is set to take a 25.1% stake in Lithuania Defense Services, a joint venture created by German manufacturers KNDS Deutschland and Rheinmetall Landsysteme. The plan is to assemble 44 Leopard 2A8 main battle tanks for Lithuania at a new site in Kaunas.

A €50 million investment in a Kaunas assembly plant signals that Lithuania wants skills and jobs to stay inside its borders.

This industrial network is expected to support not only tanks but, over time, other armoured fleets such as the CV90s, enabling faster repairs and more secure supply lines during crises.

Replacing ageing fleets and resetting doctrine

The incoming CV90 MkIVs will gradually replace older, less protected and less digitally connected vehicles in Lithuania’s land forces. That change is more than a simple hardware swap.

New armoured platforms affect how commanders plan battles, how infantry units move and how they cooperate with artillery, drones and air support. Training cycles, tactics and maintenance routines all need to be rethought.

The transition will stretch across years, locking Lithuania into a certain force structure for decades. The country is effectively committing its army to a heavy, mechanised model built around Western armour, NATO-standard communications and coordinated operations with its Nordic and Baltic partners.

A cold-eyed assessment of the eastern flank

Behind the steel and electronics lies a clear strategic reading of the region. On NATO’s eastern frontier, land forces remain the first shield. Air power and long-range missiles matter, but armoured brigades are still expected to hold ground, slow advances and absorb strikes.

For Lithuania, that means preparing for worst-case scenarios even during periods of apparent calm. The CV90 MkIV fits a doctrine where units must move fast on forest roads, survive artillery barrages and keep fighting under electronic disruption.

Officials in Vilnius are not trying to impress; they are trying to ensure Lithuanian units can fight alongside allies from day one of any crisis.

What an infantry fighting vehicle actually is

The term “infantry fighting vehicle” can be confusing for readers used to hearing about tanks. An IFV like the CV90 sits somewhere between armoured personnel carriers and main battle tanks.

In simple terms:

Type Main role Typical armament
Armoured personnel carrier (APC) Transport troops safely Machine gun, light weaponry
Infantry fighting vehicle (IFV) Transport and fight with infantry Autocannon, anti-tank missiles, machine guns
Main battle tank (MBT) Break enemy lines, destroy armour Large-calibre main gun, heavy armour

In combat, CV90s would typically bring squads of soldiers close to the front, use their own guns to suppress enemy positions and then support dismounted infantry as they advance. They are meant to be tough enough to survive in the same environment as tanks, even if they cannot match a tank’s firepower.

Scenarios Baltic planners are thinking about

Military planners rarely share detailed war plans, but their buying decisions hint at their fears. For Lithuania and its neighbours, several scenarios loom in the background:

  • A hybrid crisis with cyberattacks and border incidents that forces rapid troop movements but stops short of open war.
  • Limited incursions or provocations near critical infrastructure, where armoured units must show presence without escalating too fast.
  • A full-scale confrontation involving Russia, where Baltic and Nordic units must hold ground until larger NATO forces arrive.

In each of these scenarios, a modern armoured fleet offers options: fast redeployment, credible deterrence, and the ability to absorb the first blow. The CV90’s sensors and communications also matter in non-combat roles, from surveillance missions to joint exercises that signal unity.

There are risks as well. Heavy armour is expensive to run and maintain. Crews need constant training, and fuel consumption is high. If budgets tighten, governments may face hard choices between sustaining armoured units and funding areas like air defence, drones or cyber security.

Still, for Lithuania, the choice has been made. By committing to 100 CV90 MkIVs and a parallel fleet of Leopard 2A8 tanks, the country is betting that resilience on the ground starts with steel tracks, shared platforms and factories close to home – long before the first shot is fired.

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