Germany Boosts Drone Warfare Capabilities with €600M Contract
Germany is boosting its drone warfare capabilities with a major contract. Rheinmetall, the country's leading defence contractor, will join forces with two innovative start-ups, Helsing and Stark, to supply a significant number of drones. This deal, worth nearly €600 million in total, is set to enhance NATO's eastern flank defence against Russia.
The contract involves the delivery of up to 12,000 drones, with an initial batch to be provided promptly. This investment reflects Europe's growing interest in defence technology start-ups, particularly since Russia's invasion of Ukraine. The drones are destined for a new German brigade stationed in Lithuania, strengthening NATO's defensive posture.
Helsing, Europe's most valuable defence start-up, will contribute 6,000 strike drones for the United States and establish underwater surveillance systems in the UK. Meanwhile, Stark, founded in 2021, will bring its expertise in armed drones to the table. The company has a team in Ukraine for testing and development and plans to open a factory in Swindon, UK.
The deal aims to foster innovation and competition in the defence sector. It involves a significant investment, with each start-up set to receive close to €300 million. Stark's investors include Sequoia Capital (USA) as the lead investor, Uwe Horstmann, an investor and co-founder of Project A, who recently became Stark Defence's CEO.
This contract marks a significant step in Germany's and Europe's defence capabilities. By investing in start-ups like Helsing and Stark, the continent is not only enhancing its drone warfare capacity but also encouraging innovation and competition in the defence sector. The drones will play a crucial role in defending NATO's eastern flank, bolstering the alliance's deterrence against potential threats.
