Rheinmetall, a German defense giant, has clinched a €300mn contract to supply kamikaze drones to the Bundeswehr, Germany’s armed forces. The deal, approved by the Bundestag, marks a shift toward diversifying drone procurement after earlier wins by startups Helsing and Stark. With an initial order of €298mn, the contract could expand to €2.39bn over seven years, though parliament capped future purchases at €1bn per supplier to mitigate risks. This follows concerns over performance and pricing, with Germany’s defense ministry emphasizing the need for redundancy and industrial growth. **

Germany’s defense budget, set at €550bn over four years, underscores its rearmament drive amid tensions with Russia. Critics argue the focus remains on traditional weapons, while Ukraine’s battlefield innovations—like Lego drones credited with destroying 11,000 Russian tanks—highlight gaps in Berlin’s tech adoption.

Rheinmetall’s FV-014 drone, equipped with AI software from Auterion, boasts a 100km range and 70-minute flight time. The company faced delays in demonstrating its system but later confirmed successful trials. The move signals Rheinmetall’s push into emerging sectors like space and naval defense, despite past missteps. **

The contract’s value dwarfs a €20bn US deal with Anduril, reflecting global competition for advanced drone tech. While Rheinmetall’s CEO drew backlash for mocking Ukrainian drone makers, the firm later apologized, acknowledging Ukraine’s “innovative strength.” The deal reinforces Germany’s strategy to balance legacy systems with cutting-edge capabilities in an evolving security landscape.