Bloomberg: Berlin moves to bolster NATO with major attack drone purchases

German lawmakers are set to approve two major orders for attack drones, each valued at approximately €270 million ($319 million), from local startups Helsing and Stark Defence, as Berlin moves to strengthen NATO’s eastern defences.

The Bundestag’s budget committee is expected to authorize framework agreements with the companies for so-called medium-range loitering munition systems, according to committee members who spoke on condition of anonymity due to the confidential nature of the discussions, Bloomberg reports.

Spokespeople for Stark Defence and the German Defence Ministry declined to comment, while Helsing did not respond to requests for comment.

The purchases are part of Germany’s broader effort to expand and modernize the Bundeswehr, a push that accelerated after Russia’s full-scale invasion of Ukraine four years ago. The German government has eased borrowing rules to fund a substantial military expansion aimed at transforming the Bundeswehr into Europe’s most capable conventional army. Observers note that US President Donald Trump’s wavering commitment to NATO has added urgency to Europe’s long-delayed defense modernization.

The first deliveries from both firms are expected by October for a German battle tank brigade deployed in Lithuania, officials said. Other European NATO allies have also committed to strengthening the alliance’s eastern flank. Germany’s Inspector General of the Armed Forces, Carsten Breuer, has said he anticipates the brigade will have a sufficient number of drones by early next year. The exact number of units has not been disclosed due to national security concerns.

Loitering munitions, often referred to as “kamikaze drones,” are missiles that can launch without a predetermined target and hover over a battlefield before striking once a target is selected by an operator or onboard artificial intelligence, depending on the drone’s autonomy. The technology has become a critical component of both Russian and Ukrainian arsenals, fueling intense competition to develop the next generation of autonomous weapons.

German defence giant Rheinmetall AG is expected to receive a similar contract later this spring, though a spokesperson for the company declined to comment.

Ahead of the parliamentary vote, the Defense Ministry sought to address concerns over the involvement of US tech billionaire Peter Thiel, who holds a minority stake in Stark. Officials assured lawmakers in a confidential briefing that Thiel has no special rights or influence over the company.

Helsing, based in Munich, could secure contracts totaling up to €1.5 billion, while Stark’s deal could reach €2.9 billion. Given the rapid pace of innovation in loitering munitions, the contracts are structured to allow flexibility for product updates or cancellation if specific development milestones are not achieved, according to military procurement documents.

By Vafa Guliyeva