Germany Defence News Round-up: Week 21 (2025)

Rheinmetall and Reliance Forge Ammunition Pact

Rheinmetall AG and India’s Reliance Defence have signed a strategic partnership to produce ammunition and propellant supplies. Reliance will build a major facility in Maharashtra capable of producing 200,000 artillery shells annually, supporting India’s $5B defence export goal.

The collaboration strengthens Rheinmetall’s supply chain and supports India’s domestic defence manufacturing push. The project is part of Reliance’s larger Dhirubhai Ambani Defence City development.

Leaders from both companies called the deal a major step in bolstering Indo-German defence ties.

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Credit: DIEHL DEFENCE

Diehl Defence Taps RV Connex for IRIS-T Drone Training

Diehl Defence has partnered with Thailand’s RV Connex to supply JRV-01 target drones for IRIS-T missile live-fire training. The deal follows a 2023 MoU and includes services to enhance training realism and missile certification.

Initial drone firings are planned, with Diehl aiming to expand support in Asia and potentially globally. The IRIS-T is integrated on platforms like Eurofighter, Gripen, and F-16, and is now being adopted by Korea’s KF-21 program.

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Credit: BUNDESWEHR

Germany Eyes Southeast Asia for Defence Growth

Germany is deepening defence ties in Southeast Asia as nations pivot from US and Russian suppliers. A new pact with the Philippines adds to Berlin’s Indo-Pacific push, including warship deployments and arms sales to Singapore, Indonesia, and Thailand.

As Russian exports fall and US commitment wavers, Southeast Asia is diversifying. But Germany’s defence industry faces capacity limits, leaving room for rivals like South Korea to surge ahead.

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Credit: BDLI

German Aerospace Tops €52B, Seeks Support

Germany’s aerospace sector grew 13% in 2024, reaching €52 billion, driven by an 18% rise in civil aviation. Employment hit a record 120,000, with defence roles up 10%.

BDLI urges stronger government support through increased investment, ESA involvement, and reduced regulatory hurdles. Key message: Buy European.

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Credit: RHEINMETAL

Rheinmetall, Indra Partner to Modernise Spanish Armoured Vehicles

Rheinmetall Land systems and Spanish defence firm Indra have signed an MoU to jointly support the Spanish Armed Forces in upgrading their armoured vehicles. The partnership builds on existing collaborations, including work on the Leopard 2E combat system.

Rheinmetall brings deep expertise in armoured vehicle design and production, while Indra contributes advanced electronics, mission systems, and integration capabilities. Indra is also investing in local facilities to support armoured vehicle production in Spain.

Both firms aim to strengthen Spain’s defence industry and highlight the benefits of European cooperation in modernising military capabilities.

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Credit: LUNAR VENTURES

Lunar Ventures Launches €50M Fund II for DeepTech Startups

Berlin-based Lunar Ventures has launched a €50 million Fund II to invest in early-stage DeepTech startups. The fund, backed by investors like Isomer Capital and Lingotto, targets 25–30 pre-seed companies, mainly in Europe, with some US investments.

Founded in 2017, Lunar specialises in AI, autonomy, and infrastructure, with a team of engineers and PhDs. Fund II has already backed startups including Bruin (data infrastructure) and Lodestar Space (space robotics). The firm also promoted Morris Clay to General Partner.

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Credit: REMBERG

Remberg Raises €15M to Expand AI Maintenance Platform

Munich-based startup remberg has secured €15 million in Series A+ funding to expand its AI-powered maintenance platform across Europe. Backed by Acton Capital, Oxx, and existing investors, the company aims to reduce costly machine downtime in industrial sectors.

Founded in 2018, remberg serves 150+ customers managing over 1 million assets. Its platform uses mobile access and AI to deliver real-time troubleshooting, replacing outdated maintenance systems.

The new funding will accelerate AI development, support predictive maintenance, and boost market expansion. CEO David Hahn said the platform is key to keeping Europe’s industrial base competitive.