German drone maker Quantum Systems expands production and operations in Ukraine

Germany’s Quantum Systems is ramping up its drone production inside Ukraine while strengthening ties with its existing facilities in Germany, responding to Ukraine’s growing demand for military drones and the unique battlefield experience the country provides.

“While everyone talks about joint ventures and dual-country production, we have been doing it for years,” Oleksandr Berezhny, managing director of Quantum Systems Ukraine, told POLITICO at a drone testing event in western Ukraine this week. 

Quantum’s reconnaissance Vector drones were among the first sent to Ukraine as humanitarian aid during the early weeks of Russia’s full-scale invasion in 2022.

Over the past three years, Quantum has opened facilities across the war-torn country, complementing its production and delivery lines in Germany, the United States, and Australia.

Matthias Lehna, Quantum’s director for business development and government relations, emphasised Ukraine’s importance to the industry: “The whole development in the drone industry is coming right from the Donbas, not from Silicon Valley.” NATO may set standards, but frontline testing in Ukraine is critical for rapid military drone development.

At this week’s event, Quantum unveiled an upgraded AI-powered Vector reconnaissance drone featuring the WASP acoustic sensor, which allows pilots to detect artillery and other weapons from a distance by sound. Berezhny explained, “We are currently testing it with their rocket and artillery command to fix the range, precision, and technical specifications … to get weaponry adoption into service with the armed forces of Ukraine.”

The event also highlighted dozens of Ukrainian drone producers showcasing their technology to attract Western partners. The Ukrainian government has sought to simplify procedures and cut corruption, easing foreign investment.

Ukraine’s new DotChain Defence procurement system allows manufacturers to sell directly to military units, bypassing the previously slow centralised procedure through the State Agency for Defence Procurement.

Lehna encouraged other foreign companies to enter the market: “I’m frequently asked by the Ukrainian armed forces and the MOD to speak with foreign companies entering this market … My answer is, ‘Come on.’”

Bereznhy acknowledged challenges with Ukrainian bureaucracy but noted that streamlined procedures and open communication with the Ministry of Defence make operations feasible. He also highlighted the persistent threat of Russian attacks on military factories, prompting Quantum to distribute production across Ukraine while maintaining operations in safer European countries.

Using this approach, Quantum has increased production at its secret Ukrainian facilities from 40 to 80 drones per month, while its German plants continue producing 120 drones monthly. Lehna praised the combination of Ukrainian urgency and German engineering: “While German engineering is precise and sometimes slower, the development speed in Ukraine, combined with German engineering excellence, is coming together perfectly.”

By Tamilla Hasanova