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Home » Berlin awards domestic contractors major drone and frigate deals
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Berlin awards domestic contractors major drone and frigate deals

News RoomNews RoomApril 16, 2026No Comments
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Berlin awards domestic contractors major drone and frigate deals

Defence contractor Rheinmetall has been awarded a major contract to manufacture combat drones for the German armed forces in a deal approved by the Bundestag Budget Committee on Wednesday.

New combat drones are planned in particular for use as part of the so-called Lithuania Brigade. The unit consists of around 5,000 soldiers who guarantee the defence and security of NATO’s eastern flank at Lithuanian bases until the end of 2027, as threats from Russia persist following its full-scale invasion of Ukraine in February 2022.

The framework agreement provides for a possible total volume of up to €2.4 billion, as reported by theFrankfurter Rundschaunewspaper. The project has initially been approved for orders worth approximately €298 million.

The German military is acquiring what are commonly referred to as “kamikaze drones.”

This is because they circle in the air until a command is given to engage a target. Then explosive charges are dropped or the target is directly struck, destroying the drone in the process.

The drones are equipped with sensors and use artificial intelligence to analyse data in order to independently recognise targets on the ground and display them to the drone pilot.

The go-ahead for combat is ultimately given by a soldier. According to the German Defence Ministry, this type of drone is in demand as it minimises the risk to soldiers due to the physical distance created from the area of engagement.

The ministry says the drone order is a further step towards equipping the Lithuanian Brigade with a “broad-based reconnaissance and strike network as planned in 2027.”

Three German drone manufacturers awarded contracts

In February, the Bundestag had already approved the purchase of drones from two other manufacturers; German start-ups Helsing and Stark Defence.

The purchasing of projectiles with different capabilities would “expand the Bundeswehr’s room for manoeuvre” and increase its “flexibility and assertiveness,” according to the ministry.

The expansion to a third provider is a measure “to save time and quickly introduce the new, important capability to the troops”. The parallel contract with three manufacturers is also a precautionary measure, to account for any potential logistical or production-cycle issues.

Berlin says all three manufacturers will be treated equally. Accordingly, the contracts are divided into a fixed commission share and feature optional call-off services.

This means that a fixed number of combat drones have been ordered, which must then undergo a qualification process. If they fulfil the requirements of the armed forces, further drones can be ordered via the framework agreement.

It is one of a total of five large-scale procurement projects approved by the Budget Committee on Wednesday.

Berlin approves more defence projects

Four other projects were also approved by the Budget Committee, including several proposals worth €25 million each.

Firstly, the “Infantryman of the Future” equipment system is to be further expanded. The system is used by the fighter force and the armoured infantry.

It consists of three main elements, as Sergeant Major Sebastian K, instructor at the Bundeswehr Infantry School in Hammelburg, explains in the Bundeswehr’s own explainer video.

“Firstly, there’s the clothing, protection and carrying equipment section. Then we have the weapons, optics and optronics sub-sector and the last sub-sector is command and control equipment,” he said.

Another project is the LARUS sea rescue drone. More units of this unmanned aerial vehicle system are to be procured. In an emergency, they are intended to help sea rescuers in the North and Baltic seas and are used for reconnaissance in the optical, optronic and electromagnetic spectrum.

Two other marine projects were also approved to bolster the F124 class frigates, also known in military jargon as the “Sachsen class.” These are ships for air defence. Modifications are to be made and new systems installed on board the vessels.

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