Germany Defence News Round-up: Week 19 (2025)

Germany Acquires Arrow 4 Missile Defence

Germany will strengthen its air defence with the Israeli Arrow 4 missile defence system, covering high-altitude threats above Patriot but below Arrow 3. The decision was announced by Lieutenant General Lutz Kohlhaus at the Ground-Based Air Defence (GBAD) Summit in Berlin.

Arrow 4, developed by Israel and the US, offers enhanced sensors, longer range, and advanced target tracking to counter hypersonic and long-range missile threats. It uses the same radar and launchers as Arrow 3, providing a cost-effective upgrade for the Bundeswehr.

This acquisition is part of Germany’s broader air defense modernization, complementing existing Patriot and IRIS-T SLM systems.

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Credit: ATMOS

ATMOS and ARX Form European Space Defence Alliance

ATMOS Space Cargo and ARX Robotics have announced a strategic alliance to establish a European Space Defence Platform, integrating ATMOS’s orbital re-entry logistics with ARX’s autonomous unmanned ground systems. The partnership aims to enhance Europe’s rapid response capabilities in disaster relief, reconnaissance, and defence operations.

Following the successful 2025 launch of ATMOS’s PHOENIX 1 re-entry capsule, the alliance will leverage PHOENIX 2, launching in 2026, to create an orbit-to-ground deployment system. This system enables real-time deployment of unmanned vehicles for crisis management, security, and intelligence missions.

The alliance combines space logistics with autonomous systems, providing a scalable, resilient solution for Europe’s defence and security needs. ATMOS recently expanded into Strasbourg, France, to strengthen its European network.

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Credit: QUANTUM SYSTEMS

Quantum Systems Secures €160M, Achieves Unicorn Status

Munich-based drone startup Quantum Systems has achieved unicorn status after raising €160 million in a Series C funding round led by Balderton Capital. Other investors include Hensoldt, Airbus Defence and Space, Peter Thiel, Porsche SE, and Notion.

Quantum Systems specializes in dual use unmanned aerial vehicles (UAVs) for both military and commercial applications. The funding will accelerate the development of its advanced autonomous drone technology.

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Credit: EU

EU Invests €910M in Defence Collaboration

The European Commission has announced a €910 million investment under the 2024 European Defence Fund (EDF) to strengthen Europe’s defence capabilities and foster industry collaboration. The funding targets critical areas such as drone defence, force mobility, and disruptive technologies, including AI-driven aerial systems and next-gen stealth materials.

For the first time, Ukrainian defence industries can participate in EDF projects, enhancing cooperation between European and Ukrainian sectors. This aligns with the EU’s Rearm Europe Plan/Readiness 2030, which aims to boost European defence readiness.

The EDF, with a €7.3 billion budget for 2021-2027, supports cross-border collaboration among European defence companies, including small and medium-sized enterprises (SMEs). This year, €369 million will support 39 research projects, while €539 million will fund 23 capability development projects.

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Credit: RHEINMETALL

Rheinmetall, ICEYE Form Satellite Venture

Rheinmetall and Finnish satellite company ICEYE have announced a joint venture, Rheinmetall ICEYE Space Solutions, to produce synthetic aperture radar (SAR) satellites in Neuss, Germany, starting in 2026. Rheinmetall will hold a 60% stake, with ICEYE owning 40%.

The new “Rheinmetall Space Cluster” in Neuss will focus on SAR satellites, which offer high-resolution imaging regardless of weather or time of day, providing critical intelligence for military and security operations. Rheinmetall CEO Armin Papperger highlighted the venture’s role in strengthening Germany’s position as a technology hub.

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Credit: GA-ATS

GA-ATS Advances Do228 NXT Production

General Atomics Aerotech Systems (GA-ATS) is progressing with the in-house production of its new Do228 NXT aircraft at its Oberpfaffenhofen facility in Germany. The next-generation aircraft, based on the proven Do228 platform, features key upgrades, including LED lighting, an advanced braking system, electric air conditioning, and a new Attitude and Heading Reference System (AHRS).

GA-ATS has shifted most manufacturing to Germany to ensure quality and supply chain reliability. The first Do228 NXT is now in final assembly, with completion expected in the coming months. Managing Director Florian Rohe highlighted the benefits of in-house production for quality and delivery reliability.