The German Armed Forces (Bundeswehr) are initiating a comprehensive modernization of their close air support capabilities, increasingly relying on so-called loitering munitions, often colloquially referred to as kamikaze drones. Following the awarding of contracts to manufacturers Stark Defence and Helsing in February 2024, the defense contractor Rheinmetall is now taking center stage in the procurement planning.
According to information from government sources, the German Federal Ministry of Defense intends to request an initial 300 million euros from the Budget Committee of the Bundestag for the order of these systems from Rheinmetall. This step is part of a much larger framework agreement, the total volume of which is estimated at up to 2,4 billion euros. The decision to pursue a three-pronged strategy with regard to manufacturers underscores the military leadership's commitment to avoiding technological dependencies and ensuring a continuous supply of equipment for the troops. These systems are considered particularly crucial for deterrence and defense on NATO's eastern flank, especially in light of the planned deployment of the Lithuania Brigade.
Technological characteristics and application range of loitering ammunition
Loitering munitions are remotely piloted or semi-autonomous aircraft capable of circling over a target area for extended periods before engaging it. Unlike conventional cruise missiles or anti-tank missiles, these systems offer the operator significantly greater flexibility. Equipped with high-resolution sensors and often artificial intelligence, these aircraft facilitate target identification and tracking, even in complex terrain or under conditions of electronic interference. Only after receiving a specific attack command via a secure data link does the drone steer toward the target and destroy it by detonating its integrated warhead.
The German Armed Forces view these systems as a crucial instrument for closing capability gaps in ground-based national and alliance defense. Their ability to hover for extended periods over the battlefield allows threats to be detected early and countered without delay, eliminating the need to deploy manned aircraft into the danger zone. This not only increases the effectiveness of attacks but also protects friendly troops from direct enemy action.
Rheinmetall's portfolio in the field of conductive active ingredients
Rheinmetall positions itself with a broad range of systems to meet the requirements of the German Armed Forces. Of particular note is the Hero series, developed in cooperation with the Israeli partner UVision. These systems are characterized by varying ranges and warhead sizes, making them suitable for diverse operational scenarios, from tactical deployment within a platoon to the operational engagement of distant targets. A key advantage of the Hero drones is their high precision and the ability to abort an initiated attack up until shortly before impact if the target situation changes.
In addition, the Düsseldorf-based company offers the FV-014 system. Unlike many other models designed as multicopters, the FV-014 features a conventional wing design. This allows for greater aerodynamic efficiency, resulting in longer flight times and greater ranges. Furthermore, the electric propulsion system ensures a low acoustic and thermal signature, making it more difficult for enemy reconnaissance to detect. The combination of proven aerodynamics and state-of-the-art control technology makes this system an important addition to the German Armed Forces' arsenal.
Competition and price differentiation among suppliers
The German Armed Forces' procurement strategy is characterized by competition between established defense giants and agile technology companies. Back in February, Stark Defence and Helsing were awarded a contract totaling approximately €536 million. Significant differences are evident in the technical design and pricing. Stark Defence's Virtus model is priced at around €92.000 per unit. Despite the higher cost, it offers a crucial advantage for peacetime and training operations: The system is designed for multiple deployments and safe landings during training flights, provided it is not carrying a live warhead.
In contrast, the HX-2 from Helsing is significantly more cost-effective at around €52.000 per unit. Helsing relies heavily on software expertise and artificial intelligence to increase the effectiveness of its systems. The HX-2 is primarily designed as a single-use system, but through swarm intelligence and automated target recognition, it can also saturate large enemy formations. By combining these various systems from Stark, Helsing, and now Rheinmetall, the German Armed Forces can respond flexibly to different threat scenarios and maintain both cost-efficient mass deployments and highly specialized, reusable reconnaissance and combat systems.
Strategic importance for the Lithuania Brigade
A key driver for the accelerated procurement is the planned permanent stationing of a German brigade in Lithuania. Given the changed security situation in Europe, this unit must possess state-of-the-art defense equipment to be able to act independently in a crisis. Loitering munitions are considered a key capability in this context, enabling them to disrupt or neutralize enemy artillery or armored units even as they are en route.
The geographical conditions in the Baltic region necessitate systems capable of operating over long distances while simultaneously possessing a high degree of survivability against electronic warfare. The large orders now planned will not only secure the initial equipment for the brigade but will also serve to build up necessary ammunition stockpiles and train personnel at the bases in Germany and Lithuania.
Industrial policy considerations and long-term framework agreements
With the planned framework agreement of €2,4 billion with Rheinmetall, the Ministry of Defense is sending a clear signal to the national security industry. Such long-term agreements provide companies with the necessary planning security to build up production capacities and secure supply chains. In times of global material shortages and increasing demand for defense equipment, securing production slots is a crucial competitive advantage.
Furthermore, splitting the contracts among three manufacturers promotes the maintenance and expansion of technological expertise in Germany. While Rheinmetall, as a systems integrator, excels at integrating technology into existing platforms and vehicles, companies like Helsing contribute fresh impetus in the areas of digitalization and AI-supported warfare. This mix ensures that the Bundeswehr has access to state-of-the-art technology while simultaneously benefiting from the industrial base of a global corporation. The Budget Committee's decision on the first tranches will therefore significantly influence not only the short-term equipping of the armed forces but also the long-term direction of Germany's drone strategy.