diff --git a/docs/builders.rst b/docs/builders.rst
index e284aa949..3410853a1 100644
--- a/docs/builders.rst
+++ b/docs/builders.rst
@@ -192,6 +192,7 @@ needs_lut
 The **needs_lut** (Needs Lookup Table) builder exports all found needs to a single json file, which only include list of key ``id`` and value of ``docname`` or ``external_url``.
 
 The build creates a file called **needs_lut.json** inside the given build-folder.
+
 Usage
 +++++
 
@@ -203,32 +204,45 @@ Format
 ++++++
 
 .. code-block:: python
-
-    {
-        "extend_test_001": "directives/needextend",
-        "extend_test_002": "directives/needextend",
-
-        "req_arch_001": "directives/needarch",
-        "req_arch_004": "directives/needarch",
-    
-        "spec_arch_001": "directives/needarch",
-        "test_arch_001": "directives/needarch",
-        "COMP_T_001": "directives/needarch",
-        "COMP_T_002": "directives/needarch",
     
-        "EX_REQ_1": "examples/index",
-        "EX_REQ_2": "examples/index",
-
-        "R_F4722": "examples/index",
-        "OWN_ID_123": "examples/index",
-        "IMPL_01": "examples/index",
-        "T_C3893": "examples/index",
-        "R_2A9D0": "filter",
-        "R_22EB2": "filter",
-        "S_D70B0": "filter",
-        "S_01A67": "filter",
-        "T_5CCAA": "filter",
-        "R_17EB4": "filter",
-        "req_flow_001": "directives/needflow",
-        "spec_flow_001": "directives/needflow",
+    {
+        "created": "2023-09-25T17:11:03.162346",
+        "current_version": "1.3",
+        "project": "Sphinx-Needs",
+        "versions": {
+            "1.3": {
+                "created": "2023-09-25T17:11:03.162329",
+                "filters": {},
+                "filters_amount": 0,
+                "needs": {
+                        "extend_test_001": "directives/needextend",
+                        "extend_test_002": "directives/needextend",
+
+                        "req_arch_001": "directives/needarch",
+                        "req_arch_004": "directives/needarch",
+                    
+                        "spec_arch_001": "directives/needarch",
+                        "test_arch_001": "directives/needarch",
+                        "COMP_T_001": "directives/needarch",
+                        "COMP_T_002": "directives/needarch",
+                    
+                        "EX_REQ_1": "examples/index",
+                        "EX_REQ_2": "examples/index",
+
+                        "R_F4722": "examples/index",
+                        "OWN_ID_123": "examples/index",
+                        "IMPL_01": "examples/index",
+                        "T_C3893": "examples/index",
+                        "R_2A9D0": "filter",
+                        "R_22EB2": "filter",
+                        "S_D70B0": "filter",
+                        "S_01A67": "filter",
+                        "T_5CCAA": "filter",
+                        "R_17EB4": "filter",
+                        "req_flow_001": "directives/needflow",
+                        "spec_flow_001": "directives/needflow",
+                }
+            }
+        }
+        
     }
\ No newline at end of file
diff --git a/docs/changelog.rst b/docs/changelog.rst
index 7dfdd90aa..526d8b113 100644
--- a/docs/changelog.rst
+++ b/docs/changelog.rst
@@ -16,7 +16,6 @@ Released: under development
 -----
 Released: under development
 * Improvement: Added Builder :ref:`needs_lut_builder` and config option :ref:`needs_build_lut_json` in `conf.py`.
-
 * Improvement: Added Builder :ref:`needs_id_builder` added and config option :ref:`needs_build_json_per_id` in `conf.py`. 
 * Improvement: Reduce document build time, by memoizing the inline parse in ``build_need``
   (`#968 <https://github.com/useblocks/sphinx-needs/pull/968>`_)
@@ -25,6 +24,7 @@ Released: under development
 * Improvement: Suffix all warnings with ``[needs]``, and allow them to be suppressed
   (`#975 <https://github.com/useblocks/sphinx-needs/pull/975>`_)
 * Improvement: :ref:`needextend` for single needs is much faster.
+* Improvement: external_needs is using cached templates to save generation time.
 
 1.3.0
 -----
diff --git a/sphinx_needs/external_needs.py b/sphinx_needs/external_needs.py
index 2c3af8c50..f46f7bd1f 100644
--- a/sphinx_needs/external_needs.py
+++ b/sphinx_needs/external_needs.py
@@ -1,8 +1,9 @@
 import json
 import os
+from functools import lru_cache
 
 import requests
-from jinja2 import Environment
+from jinja2 import Environment, Template
 from requests_file import FileAdapter
 from sphinx.application import Sphinx
 from sphinx.environment import BuildEnvironment
@@ -17,6 +18,16 @@
 log = get_logger(__name__)
 
 
+@lru_cache(maxsize=20)
+def get_target_template(target_url: str) -> Template:
+    """
+    Provides template for target_link style
+    Can be cached, as the template is always the same for a given target_url
+    """
+    mem_template = Environment().from_string(target_url)
+    return mem_template
+
+
 def load_external_needs(app: Sphinx, env: BuildEnvironment, _docname: str) -> None:
     needs_config = NeedsSphinxConfig(app.config)
     for source in needs_config.external_needs:
@@ -95,7 +106,7 @@ def load_external_needs(app: Sphinx, env: BuildEnvironment, _docname: str) -> No
 
             if target_url:
                 # render jinja content
-                mem_template = Environment().from_string(target_url)
+                mem_template = get_target_template(target_url)
                 cal_target_url = mem_template.render(**{"need": need})
                 need_params["external_url"] = f'{source["base_url"]}/{cal_target_url}'
             else:
diff --git a/sphinx_needs/templates/permalink.html b/sphinx_needs/templates/permalink.html
index 8f324d6b2..b329e16cf 100644
--- a/sphinx_needs/templates/permalink.html
+++ b/sphinx_needs/templates/permalink.html
@@ -29,7 +29,7 @@
                 const needs_obj = version['needs'];
 
                 const id = getParameterByName('id');
-                var pathname = new URL(window.location.href).pathname; 
+                var pathname = new URL(window.location.href).pathname;
 
                 pathname = pathname.substring(0, pathname.lastIndexOf('{{ permalink_file }}'));