Anduril and Rheinmetall Announce Strategic Partnership
Marking another significant development in European defense technology, American defense technology startup, Anduril, and German defense company Rheinmetall, have formed a strategic partnership to co-produce a range of autonomous air systems and propulsion capabilities for European militaries.
The collaboration between Anduril and Rheinmetall will concentrate on three key areas: the Barracuda, which is Anduril's cost-effective autonomous cruise missile; the Fury, an unmanned combat vehicle with a variant being developed for the Collaborative Combat Aircraft program; and the production of solid rocket motors utilizing Anduril's advanced manufacturing techniques. This strategic focus aims to leverage the strengths of both companies in autonomous systems and propulsion technologies.
The two companies will jointly develop European variants of the Barracuda and Fury, integrating these systems into Rheinmetall's digital platform, Battlefield. European suppliers and manufacturers will be involved in the production process, ensuring that the capabilities meet the specific needs of individual countries.
"This collaboration represents a new model of defense cooperation, emphasizing shared production, operational relevance, and mutual respect for sovereignty," stated Anduril CEO Brian Schimpf.
“By integrating Anduril`s solutions into Rheinmetall´s European production set up and digital sovereignty framework, we’re building on that foundation to bring new kinds of autonomous capabilities into service, ones that are quick to produce, modular, and aligned with NATO’s evolving requirements,” said Armin Papperger, CEO of Rheinmetall.
European defense has undergone significant changes in recent years. In particular, Russia's invasion of Ukraine in 2022 and President Trump's return to office this January highlighted Europe's need to become more self-reliant. In response, countries such as the UK and Germany have significantly increased their defense budgets, focusing on novel and advanced capabilities. More broadly, Europe has adopted a wartime posture to rapidly enhance its capabilities and deter adversaries - namely, Russia. The European Union recently initiated a €150 billion ($169.5 billion) loans-for-arms fund aimed at cutting-edge technology that must be produced within Europe.
Rheinmetall's stock has surged by approximately 56% this year due to these developments. American defense technology companies have also taken notice, with firms like Applied Intuition, Saronic, and Anduril expanding their operations in Europe, aiming to capitalize on a growing market.
Anduril and Rheinmetall view this partnership as a long-term investment and the beginning of an official extended collaboration, leveraging Rheinmetall's existing network to introduce Anduril's capabilities to more European customers. “We’re seeing this as a tremendous opportunity to really hit the international markets and figure out what relationships, partnerships, so forth, are going to be required to help us grow into these new markets,” Trae Stephens, Anduril’s cofounder and executive chairman said. The companies aim to co-develop systems for each European market, emphasizing local control, transparency, and adaptability over dependency. The success of the partnership is already evident, as the two companies have been collaborating on counter-unmanned aerial systems since last summer.